Improve The Quality Of Your Real Estate Data

Improve the Quality of Your Real Estate Data by Mark RobinsonReal Estate data comprises of many categories – characteristics of a property, history of the property and how did it change during its lifetime – renovations, add-ons, permits, etc., current for sale properties, history of sale records, history of tax assessments, current mortgage information, any outstanding liens, utility consumption, neighborhoods, schools, and the list goes on. You can see that there is data about a real property and a lot of additional data about how the property is influenced. And as you read through that partial list of data categories you would have also observed that each of those categories are created and maintained by a different company or a government agency. Given this disparate sources of data and how the real estate industry has evolved, assembling all this in one place to know everything about a single property has become a challenge. Before we begin explaining why this is a challenge, let us briefly explain who uses this data and why this is so important.Relevance of Data Quality in Real EstateHousing alone contributes about 15-18% to the GDP of the US economy. If you consider commercial real estate the numbers climb to well over 20%. The real estate ecosystem is comprised of numerous industries and each of them are dependent on data. Here are a few of them:

Here is one reason why data quality matters across these players: Consider the loan processing steps in home buying. The homebuyer applies for a mortgage at a lender and the lender’s underwriter hires an appraiser to determine the actual value of the property before lending a percentage of that value (a maximum of 80% in most cases) to the buyer. Once the mortgage is issued it is often transferred to a mortgage servicer and the mortgage itself is sold to another financial institution to enable securitization of the loan. Securitization enables other investors across the world to participate in the US mortgage market and in turn in the US real estate market. Each party in this chain of activities and especially the investor in the security needs to understand the security’s Value at Risk (VAR) which is directly dependent on the value of the home among many other categories of risk such as borrower risk, market risk, and so on.Read more at https://propmix.io/improve_the_quality_of_your_real_estate_dataArticle Source: eArticlesOnline.com