What Is Data Science and What Can It Offer Commercial Appraisers?

The process of commercial appraisal relies heavily on data collection and presentation. Collecting accurate data is fundamental, but a great chart can make a big difference in client perception.

So what exactly is data science? This article pulls back the curtain on data science to better understand the powerful benefits that commercial appraisers can gain from utilizing data science tools and techniques. 

Data science is collecting, organizing, and presenting data

It’s not enough to simply collect data at random anymore. An excellent data scientist should know how to design a data collection pipeline with intention that only tracks relevant data points. For instance, if you are performing data analysis on your local weather channel to assess its forecast accuracy, you wouldn't need to track what color shirt the broadcaster is wearing. Instead, you would collect data on how often their verbal, animated, and online predictions come true. You could also examine which equipment and algorithms they use to make predictions.

It's not always clear which factors affect the outcome of a situation though. This is most often true for complicated business circumstances, such as a merger or a political election. In these cases, data scientists will often collect data broadly and then perform complex mathematical and statistical analyses on their datasets to uncover patterns and compare them to past data.

Finally, data scientists must be able to clearly and accurately present data so that actionable insights can be extracted by relevant parties. They need skills in computer programming, software, mathematical training, and visual design in order to make data understandable. Data science can include prediction, classification, pattern identification, recognition, recommendation, dashboards and visualizations, scoring and ranking, and aberration detection. All industries can benefit greatly from data science if they can understand which data points are significant to their unique business.

What kind of data should commercial appraisers be managing?

Data science can offer commercial appraisers additional analysis tools and visualization techniques to help keep everything organized and meet their professional goals. Commercial appraisers manage tons of data on any given day. With each appraisal, they must consider client information, industry research, marketing transactions, and all the data associated with the subject property. So what exactly is the most essential data that data commercial appraisers need to prioritize?

If you have a commercial appraisal business, then bids and awarded job data needs to be a top priority. You need a database that is robust and easy to use. It should include client information, job tracking, billing, and invoicing options. Once again, it’s not only the collection of client data that is essential. A great data science system will analyze and present data to you effortlessly and in an appealing way. One-click invoicing, for example, is a great way to apply the power of data science to maximize your efficiency as a commercial appraiser.

The second type of data that commercial appraisers need to prioritize is property data. This means transactional data like sale, lease, and income/expenses. It also means documents and other property information like square footage, unit mix surveys, and photos.

Which data analysis techniques to utilize in commercial appraisal

The most important part of data analysis is objectivity. Commercial appraisers do need to make judgments in the course of doing their job, which naturally includes some subjectivity. A robust data analysis tool can help back-up any statements you make to clients by clearly showing your work. 

When it comes to having an impact, the most powerful data science tools for commercial appraisers are data visualization and dashboard creation. 

An appraisal-specific application like Valcre can transform your data into digestible visualizations. This helps both you and your clients get on the same page quicker by making communication that much easier. By collecting, analyzing, and presenting data within the same application, you can increase your efficiency, streamline communication, and ultimately impress your clients.

Beautiful templates are another fantastic value-add in any data analysis tool. Rather than exporting drab and difficult-to-interpret sales comparable sheets, transform your appraisal workflow with visually pleasing templates and dashboards. Great visualizations allow you and your clients to assess variables and compare data between properties at a glance.

A database could be the secret weapon you’ve been waiting for. Use data analysis to help you make decisions, improve customer perceptions, prospect for new clients, and present your findings confidently. Make sure you choose a tool that’s cloud-enabled so you can access your database at the office, at home, as well as in the field. 

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This aricle first appared on the Valcre blog at valcre.com/blog/what-is-data-science-and-what-can-it-offer-commercial-appraisers.