The real estate market is constantly risky and uncertain.
According to BBC, the value of a house at closing, which can take many weeks for land registries to process, is no longer the same with the house's asking price when it was listed, especially in a market that changes so fast.
CEO of Dutch Software Company GeoPhy, Teun van den Dries, believes that his breakthrough analytics software database can be of help in this situation. The European Public Real Estate Association then thinks that the use of his software can start with the commercial property market which has a more global reach and valued at €22.5 trillion.
To elaborate more on Teun's software program, the database collects lots of data such as public transport, roads, congestion, location, demographics, local economy, building quality and more to arrive with an estimated worth of a property. Moreover, he has numbers for 41 countries worldwide.
"If you look at the current property market, almost all transactions are handled by estate agents that will describe property as being well situated, with great accessibility and beautiful views," BBC quotes what the GeoPhy CEO said. "And that could all be true, but it doesn't mean anything and it doesn't allow you to compare."
He also said that the data from his software could simplify or translate what real estate agents creatively say as property description. Talking about the value derived from data and a set of comparable rules, he added, "A valuation is never right until someone pays. So, it's the same price point a surveyor will put their signature on."
He warned though that there are some estimates such as parts of London like St James's Park or Mayfair, home of the £90 million mansion that defy data analysis therefore. These are the limitations of the algorithm of his software.
