Development of Real Estate Data Management and Valuation System,

 DEVELOPMENT OF REAL ESTATE DATA MANAGEMENT AND VALUATION SYSTEM, WEB-BASED

Associate Professor Dr. Buang Alias (Leader)
Professor Rosdi Ab Rahman
Associate Professor Mohd Safie Mohd
Dr. Chitrakala Muthuveerappan

[Universiti Teknologi Malaysia (UTM)]

ABSTRACT

Conventional valuation practices or just-in-time valuation tends to value properties individually, taking into consideration all relevant spatial and non-spatial attributes that, in their views, influence values. It is a time-consuming process due to limited human capacity when valuing a large number of properties, particularly for rating purposes. Since valuing properties for tax purposes is purely based on approximate assumptions, just-in-time simulation for forecasting with various values becomes unrealistic. Consequently, due to the increasing number of properties and similar types of properties within the comparable real estate market, mass appraisal is being practiced in many countries, including Malaysia, but is limited.

However, the development of new technology and enhancement of computer modelling for mass appraisal have improved both the accuracy and integration of the mass appraisal system with geographical location identification for better value management. Taking those advances aside, the diversity of contemporary property developments and markets makes the task of appraising properties using MRA increasingly difficult. Through research and publication, as well as the marketing of a system to conduct appraisal of properties on a mass basis, confidence within the community in adopting an automated process using cost or comparable models has improved.

However, a new system ought to be further developed to meet new challenges that the market now presents, such as accessibility to information. Based on that, the main objective of this research is to develop a dynamic web-based Real Estate data management and mass appraisal system. The whole development of the system was divided into four (4) phases: Phase I - Initiative, Phase II - Framework and Modelling, Phase III - Design & Implementation, and Phase IV - Documentation. Following through the phases, the system development of a prototype web-based Mass Appraisal is due to the lack of standardisation of terminologies as various parameters are being used.

This study identifies the non-harmonious terminology commonly used by various valuation authorities into five categories, namely: a) Ownership details, b) Owners' details, c) Comparable details, d) Valuation details, and e) G.I.S. details. For this, the research recommends a rational technical terminology standardisation based on major practices by organisations to be adopted by organisations. Secondly, there is the issue of flexibility. In order to implement a friendly web-based Mass Appraisal system, it needs to adopt a flexible or dynamic approach which would enable users to add new variables. Thirdly (although not within the scope of this research) is the issue of integration. This, to us, is an important issue that affects the value of the mass appraisal system. The inability to interface with other important systems is, in most cases, administrative rather than technical. Further research can be conducted focusing on the development of a full-scale web-based mass appraisal system.