How to Use a Data Room for Real Estate
Selling a property involves a lot of processes, communication, and paperwork. What compounds this issue is that you may be working on selling a lot of properties simultaneously. With all of this in mind, it can be very difficult to manage all of the administrative tasks while giving your customers all of the attention that they deserve. A virtual data room can help you take care of all of the documents, communication, and security so that you can focus on running your business.
Coming to Terms on the Selling Price
Determining the selling price will involve studying a lot of documents such as floor plans, maps any appraisals that have been previously done and many other documents. It would be much easier for you if all of the necessary documentation was all in one single place for all of the potential buyers to see. All of the participants inside the data room do not have to be aware of each other and you can communicate with each prospective buyer individually.
The Q&A module will allow all participants to ask questions and you will be able to set question statuses to let everybody know that a question has been answered. Furthermore, the data room itself can produce an FAQ sheet which will eliminate redundant questions altogether. Should you need to have a discussion in real-time, you will be able to do this inside the data room as well. This is much safer than using email or instant messaging services since they are not secured and can be easily leaked. All of the information and communication can be synced with your CRM if the provider offers integration through an API.
Managing all of the Buyers
Since there could be a lot of buyers involved in the sales process, it can be very time consuming to send all of the documents to every single potential buyer. Furthermore, not every buyer will be serious about purchasing the property. It will be much easier for you to have all of your documents in one single storage location and then simply add buyers as they come along. If you do not want every single person involved to see all of the documents, you will be able to set granular access permissions. For example, serious buyers will be allowed to see all of the documents while others will be able to see only a limited amount of documents.
This can come in handy with advertising and showing the property. Modern technology has eliminated the need to physically travel to a certain location in order to see a property. Everything can be done via a 3D tour that can be stored inside the data room. More serious buyers will be able to see in-depth information. For example, some data room offers secure spreadsheet viewing which allows all users to see the data inside the spreadsheet but restrict access to the formulas that were used during the calculation. This is one of the most innovative features available today that allow you to achieve a higher level of granularity.
After the Sale
After the sale is over, the contents of the data room can be downloaded onto a DVD or flash drive to store for your records. The service provider will usually store the contents on their servers as well in case you need to restart the project. The data room will keep track of all the actions that went on inside the data room and provide you with comprehensive, detailed reports. This will be very useful in the event of a legal dispute since you will be able to document exactly what went on inside the data room. Having said this, one of the biggest benefits of working inside the data room is that it mitigates the risk of a lawsuit altogether. All participants are aware that everybody’s actions are being monitored and it will, therefore, discourage them from any unauthorized activities.
For all of the convenience and security features, it is much better to use a data room instead of a cloud service such as Google Drive or Dropbox. These services do not even come close to some of the security measures that come standard inside a lot of the data rooms out there. These safety features include 256-bit encryption, two-factor authentication, watermarks, and many other features. Some of the most innovative data rooms offer secure “Fence View” which serves as a physical barrier between the document and the viewer. This helps defend against camera based attacks. Without the necessary security features, they are sitting ducks for hackers and any other cyber threat faced today by business leaders.