In the past, assessing the value of your home was problematic and often arbitrary. The reason is data. Either you did not have enough of it. Or the data was irrelevant. Or the data was flawed.
X-Value, in the form of big data and computer algorithms, has solved the data problem, making it possible for you to calculate the market value on any flat in Singapore in seconds. (SRX Property will release X-Value for Landed Homes soon.)
What is X-Value?
X-Value uses real-time big data from trusted private and public sources, comparable market analysis, machine learning, and property indices to calculate your home’s value in seconds.
The formulas and volumes of calculations behind each X-Value are complex but the concepts behind them are straightforward.
X-Value starts with the best data available.
SRX Property’s computers collect and clean raw data from close to 40 big property databases in Singapore, making the X-Value database the most comprehensive depository of property data in Singapore. Government databases, like that of URA, are subsets of the X-Value database.
Next, we use algorithms, which are mathematical formulas, to process the raw data into four dimensional information that includes property attributes, time series, location elements, and outputs like rental values at the unit level.
Using this four dimensional information, the computer can conduct Comparable Market Analysis (CMA), which is how the real estate market prices property. Using CMA methodology, the computer identifies recent and relevant transactions that can be used as a price comparison for your home.
The computer matches your home with similar transactions in terms of location, block, size, and floor. To make CMA more accurate, SRX Property’s computers process the data in ways that only we can. For example, we use geospatial applications that allow us to take into account the proximity of homes to MRTs, schools, and business centers, which directly impact the valuation of homes.
We also use our property indices to adjust the CMA to reflect the current market conditions. When computing land home values, X-Value takes into account the build-up of the property and the land area. The end result is 120 million market X-Value data points for 1 million homes in Singapore.
The X-Value data points tell you today’s X-Value as well as the monthly value of your home for the last ten years. We call this your X-Trend.
It is important to note that the X-Value and X-Trend are computer-generated numbers based on quantitative and geospatial data only. It does not take into account qualitative factors like the condition of the interior.
Therefore, when finalizing the offer or asking price of a home, you want to work with trusted advisors who have access to the technical details of the X-Value.
Your advisers can provide you with a Home Report that allows you to review all the transactions and adjustments that went into the X-Value calculation. If necessary, you can adjust the X-Value up or down to take into account the condition of the home and other qualitative judgments.
In summary, X-Value has made it very fast and accurate to price a home in Singapore.
X-Value gives you an unbiased, technical valuation of the home. You can then work with your agent and certified valuer to take into account qualitative (or human judgment) factors.