Data input accuracy, why it is 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 seems like often a long chore, of listing input, has larger effect than most realize. Inaccurate data fields, untimely or incorrect status changes make every Real Estate professional’s job harder and more time consuming. Products, Websites, Statistics and client management, retention and repeat business depend on data accuracy.

The first issue is the misuse of address fields. An address input is usually broken into several fields. They are:

1. Street Number

2. Street Direction – North, South, East, West

3. Street Name

4. Street Suffix – Street, Lane, Circle, Drive, etc

5. County

6. City

7. State

8. Zip code or Zip Pus 4

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

These fields drive Street, City County and state searching on any website. Map searches and results will use this information along with geodata information to pin point a listing as accurate as possible. In most cities the street number and name will be the same with the Direction or Suffix being the unique factor in locating the correct listing.

A common comment is “Why separate the Direction and Suffix”? If the both Street Direction and Suffix must entered into a single line then creating the search technology become harder. Entering the information of field 2, 3, and 4 into one typed line requires additional code be written to parse and scrub data. Plus no matter how people are trained, notified there will be incorrect entries. For example N Main Street may be entered:

• N Main Street

• N Main St

• N Main St.

• North Main Street

• Main

• Main Str

• N Main

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

Industry third party vendors also depend on this information to produce reports such that are given to buyer and sellers. A CMA program that looks for like homes will more than likely miss one or more listings if the above holds true. For an agent competing to sign a listing or providing proof of a needed price, inaccurate report will hurt them since most consumers have already researched a lot of this on sites such as Zillow or Trulia.

For Real Estate, the Internet has allowed unlimited customer growth potential. IDX on any Realtor© site is as important as the index page. Providing the most current and accurate listing information is a key factor in keeping someone on your site and having them become a potential seller or buyer. Having wrong information because of bad data make a site unreliable which overtime reduces the number of hits the site receives. This ultimately results in the obsolete objective of why a REALTOR© created the site in the first place.

Another factor is outdated information. In this case I am focusing on listing content that is no longer valid. Have listings that are off the market or a wrong price due to price change is another way to lose credibility with new or return customers.

In the MLS this falls under a listing status. An incorrect status has a powerful impact on not just stale data on a website. MLS’s report status information to NAR which compiles and creates reports that are used to report housing trends that are used by many media agencies to report on the current market. Third party vendors are providing some unique and powerful statistic reports that agents purchase and use on websites and presentations. Not updating a listing to the appropriate status in a timely manner skews those numbers.

How does One error come back to hurt you…Appraisals.

Everyday, agents are receiving appraisals that are not meeting agreed contract prices. Often due to bad data that was pulled from an appraiser or Automated Valuation System that the lender used to determine the amount they would be willing to lend on that property. The more accurate and detail the information the information in the MLS the better appraisals will result.

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

How does the MLS protect me on entering inaccurate data?

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

The use of data checking systems to look at data and determine if there is missing or incorrect information has become a powerful tool in making sure that the data is as accurate as possible. These systems notify members of an error and that the need to have it fixed.

Having accurate and timely data is the most important tool that drives the current Real Estate Industry.

Welcome and Hello

I tend not to be a writer but have lots to say about Real Estate Data and how Administration and Management of RETS feeds are important to the Real Estate industry. I love what I do and also lucky to have a good relationship and friendship with some of the best minds in this industry. To them I will defer for their particular expertise. My intent is keep you informed from what I have learned along with experts to provide best practices on keeping your MLS data secure.

If you are responsible for MLS Data these are some of the people that, in my opinion, should be the basic reading to follow whether on blog or twitter.

Matt Cohen Clareity's Chief Technologist, Blog and Twitter.  Technology, and security I have yet to meet anyone who can surpass what he knows.

Kristen Carr of RETS IQ, Blog and Twitter.   Want to be able to feed data via RETS? Want to know what RETS is?  Need to keep you data feeds or bandwidth, under control? Kristen is the one to ask.

Brian Larson a lawyer, advisor to Multiple Listing Services and Real Estate Associations, Blog and Twitter.  Brian is one the best on the legal prospective regarding Real Estate policy and Issues.

Rob Overman MLS, Real Estate and RETS Software, Blog and Twitter. Rob brought to the industry many of the most widely used programs today.

Darity Wesley, Privacy Solutions Guru, Website and Twitter.  Some of Darity's expertise is data licensing contracts, personal privacy security, website privacy evaluations and much more.

Nambi Pambi a long time friend, Blog and Twitter.  Nambi (not a real name) is not involved in the Real Estate industry but provides Telecom Solutions for a worldwide company.  Since the mobile phone industry is an important asset to Real Estate agents Nambi's incite, into what is happening, is important to know.

There are many more people that should be on this list and I will add them in later issues.

So if you have any questions or suggestions, please ask.  Hopefully I can help answer them in some way.

Peace