Data Input Accuracy: Why it’s important and How it affects our Industry

 The Real Estate Industry is driven by the data we input, change and use on a daily basis. What may seem like a chore of inputting a listing, has a larger effect than most realize. Inaccurate data fields and untimely or incorrect status changes make every real estate professional’s job harder and more time consuming. Products, web sites, statistics, client management, retention and repeat business depend on data accuracy.

Address Fields

• Address input is usually divided into several fields as follows:
• Street Number
• Street Direction – North, South, East, West
• Street Name
• Street Suffix – Drive, Street, etc.
• County
• City
• State
• Zip code or Zip Pus 4

Sections 2, 3, 4, 5, 6, and 7 should always be a MLS editable table to maintain consistency and accuracy.

These fields determine Street, City, County and state searches on any website. Map searches use this input along with geodata information to pin point a listing as accurately as possible. In most cities, the street number and name will be used more than once with the direction or suffix as the unique factor to locate the correct listing.

Why separate the Direction and Suffix? If both street direction and suffix were entered into a single line, then creating the search technology becomes more difficult. Entering the information of fields 2, 3, and 4 into one typed line requires additional code to be written to parse and scrub data. For example: N Main Street could be entered as:

• N Main Street
• N Main St
• No. Main St.
• North Main Street
• Main
• Main Street
• N Main

While this example may seem ridiculous, these are a true representation of actual entries. A programmer would have to think of every variation and change the code every time a new variation of the same address is entered. The constant change in code leads to additional programming costs and even more errors since not every possibility may be thought of. 

Industry third party vendors also depend on this information to produce reports given to buyers and sellers. A CMA program that looks for similar homes will likely miss one or more listings if the above holds true.   If an agent is competing for a listing and  showing comparable prices, an inaccurate report could diminish their credibility since most consumers have already researched on sites such as Zillow or Trulia.

The Internet has provided unlimited customer growth potential in real estate with IDX availability on web sites. Providing the most current and accurate listing information is a key factor to keep someone on your site and potentially convert them to a customer. Inaccurate information caused by bad data makes a site unreliable, which over time reduces the number of hits received.

Outdated Information

Outdated information refers to listing content that is no longer valid, including listings that are off the market or priced incorrectly due to a price change.

An incorrect listing status has a powerful impact on website data as well as national reports. MLS’ throughout the country report status information to NAR which compiles the data to identify housing trends. This is where many media agencies get information on the current market. Third party vendors are providing some unique and powerful statistic reports that agents purchase and use on web sites and in presentations. Not updating a listing to the appropriate status in a timely manner skews those numbers.  

How does one error come back to bite you? . . . Appraisals!

Everyday agents receive appraisals that do not meet agreed contract prices. This is often due to bad data pulled by an appraiser or from Automated Valuation Systems used by the lender to determine the amount they are willing to lend on that property. The more accurate and detailed the information in a MLS, the better chance appraisals will also be more accurate.

Tax Identification Number   

Tax ID numbers represent the ability to show a buyer the addition to their monthly expenses above the mortgage. Globally, the Tax ID is another unique identifier used in valuation sites to pin point an area and to create a home value.  

How does the MLS protect me with entering inaccurate data?

One of the best methods is to auto populate existing information when entering a listing from a tax source. This not only lowers the chance of error but saves time entering a listing.

The use of data checking systems to review data and determine if there is missing or incorrect information has become a powerful tool in assuring that the data is as accurate as possible. These systems notify subscribers of an error that needs to be corrected.

Having accurate and timely data is the most important tool that drives the current real estate industry. Your attention to such detail can make or break the next deal for you and other real estate professionals.