Start Date
20-9-2016 9:15 AM
End Date
20-9-2016 10:15 AM
Description
Real estate professionals often say that the value of real estate is depending on location, location and location. Using the same figure of speech we can say that the mass appraisal of real estate is depending on data quality, data quality and data quality. Good models and experienced and well trained mass appraisal specialists are needed for the annual mass appraisal, but we have experienced that the most important aspect to achieve good results is the quality of data. For successful mass appraisal results there are two categories of data to be considered: market data and object characteristics. Market data of course consists of sales prices but a reliable appraisal also needs information about properties on the market that are not sold for a longer period of time. In mass appraisal the outcome of the appraisal for a specific property is entirely depending on the object characteristics registered. In the Netherlands we have a system in which we combine the use of data characteristics available in formal registers (the formal system of base registers) and the collecting of data especially for the mass appraisal. Regardless which source is used to obtain the object characteristics, the appraiser is responsible for a good system of quality control. For this quality control we use a procedure in which we try to learn as much as possible from experiences gained during market analysis and the handling of complaints (appeals) to measure the quality of data.
Publication Date
September 2016
Recommended Citation
Kuijper, Marco and Kathmann, Ruud M., "Three key principles for mass appraisal: Data quality, data quality, and data quality" (2016). International Research Symposium. 6.
https://researchexchange.iaao.org/irs/irs16/sessions/6
Three key principles for mass appraisal: Data quality, data quality, and data quality
Real estate professionals often say that the value of real estate is depending on location, location and location. Using the same figure of speech we can say that the mass appraisal of real estate is depending on data quality, data quality and data quality. Good models and experienced and well trained mass appraisal specialists are needed for the annual mass appraisal, but we have experienced that the most important aspect to achieve good results is the quality of data. For successful mass appraisal results there are two categories of data to be considered: market data and object characteristics. Market data of course consists of sales prices but a reliable appraisal also needs information about properties on the market that are not sold for a longer period of time. In mass appraisal the outcome of the appraisal for a specific property is entirely depending on the object characteristics registered. In the Netherlands we have a system in which we combine the use of data characteristics available in formal registers (the formal system of base registers) and the collecting of data especially for the mass appraisal. Regardless which source is used to obtain the object characteristics, the appraiser is responsible for a good system of quality control. For this quality control we use a procedure in which we try to learn as much as possible from experiences gained during market analysis and the handling of complaints (appeals) to measure the quality of data.