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Quality, Sources & Processing
Data quality has a direct impact on valuation accuracy, and it must therefore be reliable, accurate, openly available and lastly secure, as the corruption of data
increasingly becomes an issue. Valuers must be transparent about the quality of data to ensure that clients have sufficient understanding of the accuracy of the value and the valuation report.
Currently, valuers predominantly use primary (or ‘direct’) data sources, such as client, inspection and property analysis, complemented by market analysis and public sources. Here the challenge is often accessibility. The expert group noted that a client is not legally obliged to provide a valuer with all the information available.
Verifying, qualifying, classifying, calculating and analyzing data. This links back to the importance of data quality, as a higher level of uncertainty about the accuracy and reliability of the data gathered leads to a higher risk of inaccuracy in valuation outcomes, or ‘garbage in, garbage out’.
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