SRX PROPERTY has launched a full valuation system called "SRX V-8", which it believes will fill a few gaps in the real estate market.
Firstly, it will make valuations less costly and therefore accessible to retail users.
Traditionally, valuations have mostly been done by institutions. SRX says its service costs less as it is able to do more valuations than conventional valuers due to its use of big data and technology. This results in economies of scale.
Secondly, it will reduce risks by improving the transparency in valuation documentation, going beyond just providing a single valuation number to also detailing property comparables, for example.
Thirdly, it is able to churn out valuations faster than an incumbent consultancy.
This is because as a data management firm, it already has the relevant processed and formatted valuation information on hand. CEO Sam Baker told BT that SRX's strength lies in its core as a data management company.
The volume of data it processes allows it to analyse big data quickly and efficiently.
Asked what was its main motivation to get into the valuation space, he replied: "It is a natural result of our efforts to create a standard pricing mechanism for the real estate market ...
"One thing that the real estate market has lagged compared to other markets is a clear pricing standard and mechanism. In traditional real estate, price discovery has not equalled that of other markets. People are debating over a price that no one knows how it is obtained.
"The issue is that today's valuation market is not set up for price discovery at the retail level, but at the institutional.
"It is set up to support underwriting for mortgage financing, and the valuation world is set up to support property valuations for accounting and legal purposes for institutions, but not for price discovery at the point of sale.
"We didn't get into the business to be a valuation firm. We got in the business to provide a transparent pricing mechanism for real estate which allows people to have confidence in arriving at a price for a home to buy and sell, and that reduces risks in the marketplace."
This article was first published on April 6, 2016.
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