Many of you have heard of the saying “garbage in – garbage out” and it is certainly relevant to the property sector.
PropertyESP recently undertook some analysis of the North Fremantle, North Coogee and South Fremantle apartment sales from 2010-2016.
When we downloaded the data from Landgate you can imagine our surprise when 200 of the entries were coded with a land use of “other”.
But unlike other companies that would have just removed this data from the dataset, we checked each record to determine what the actual land use was. And yes it was labour intensive!
But on that basis, we were able to deliver a concise and accurate report to our client.
When generic data is published it often includes the whole gamut of sales – including some with sales prices that we call outliers.
These are generally when one party buys out the interest of another at a price that is substantially lower than the median market price. As a result, they can distort this data.
While it is a time consuming exercise to validate the data of all the “garbage,” at the end of the day including those sales that are not accurate will affect the final analysis and this then is more the concern.
At PropertyESP we take the extra steps because we believe good data in – good data out and that is what ultimately guides our clients’ decision making!
If you would like to see how we make sense of property contact Sam Reece on 0452 067 117.