Raising the Data Standards Bar at RESO: The Future of Property Valuation

Last week, our very own CEO Holly Tachovsky took the stage at the RESO (Real Estate Standards Organization) Tech Summit to discuss the ever-evolving landscape of real estate and property data. If there is one universal theme from the summit, it’s that the need for data standardization is critical.

Globally, estimates suggest the value of investable real estate assets in the world exceed $60 trillion – one of the largest asset classes in the world. However, the industry sees the least amount of data standardization – specifically as it relates to property valuation models. Property valuation is mainly fed by two factors: location and condition. The trouble with these models is that the latter is oftentimes unknown. As a result, inaccurate information (or lack thereof) may drastically overvalue or undervalue a property.

With the recent shift in homeowner preferences, property condition data will become increasingly important. Since 2010, we’ve seen a 30% increase in residential remodeling. As new construction is outpaced by remodeling activity, we anticipate condition data insights will be the next step in the evolution of the real estate industry – especially since the industry does not currently utilize a standard in evaluation of renovation work. As we’ve seen with the insurance industry, property condition and history data are key components in understanding the value of a property.

As the leading provider of property history and condition data, we recognize the importance of data standards and have worked to create these standards for building and construction permit data. We’re excited to join the conversation to enhance the real estate knowledge landscape by sharing indicators, patterns, and insights to help further the industry.

For more information on how our property history and condition insights can help support property valuation models, contact us today.