The Importance of Separating Data Collection from Valuation

An assessor’s legitimacy comes from a property owner’s trust that the value assigned to their property by the assessor is fair, equitable, and accurate. Growing this trust begins by structuring an objective assessing process that separates data collection from valuation. Separating these two core parts of the assessing process removes the potential for bias to creep into either and allows each separate team to focus on data collection or valuation.

Keeping Data and Values Objective

Bias is anathema to trust; if property owners perceive even a hint of bias in the assessing process, a niggle of doubt as to the veracity of their property’s valuation takes seed and they begin to view the assessor as someone out to get them instead of as someone charged with being fair and equitable.

When data collectors also value properties, it’s easy for the hint of bias to appear, even if it is an illusion. People ask themselves, “Did this person, who ultimately determines the value of my house, fudge the numbers to get to that value?” It’s a ludicrous thought, but the question arises from time to time, and in the age of social media, that ludicrous falsity becomes true. The danger of misrepresentation is the main reason why it’s so important to separate data collection and valuation from each other, to structurally ensure no bias and to squelch the potential for even the appearance of a conflict of interest.

The other reason to separate data collection from valuation is because each task has different objectives.

Data collectors exist to gather accurate, verifiable information about the properties they visit. They specialize in dissecting and noting a building’s structure, in observing the way space is used, and in measuring space. They depend on clear standards and definitions so that the data they collect is consistent and can be objectively identified and analyzed.

In contrast, appraisers specialize in interpreting this property data to determine current value. They apply their financial and analytical skills along with their market knowledge. While they care about the data, they do not have the time to verify the accuracy of every detail, but through statistics can get a sense of the quality of the data overall. Appraisers spend most of their time analyzing market trends, reviewing sales, and determining if the sales used to get a feel of the market are arms-length and trustworthy. They prioritize economic factors over physical ones focusing on the economic aspects of the property. 

Maintaining Independence Between Data Collection and Valuation

Because each type of worker has a different task, with one providing the input for the other, independence for each is essential for a fair and objective assessment. Without independence, data collection or valuation can unintentionally influence the other, undermining the integrity of the entire process. Maintaining this separation reinforces the credibility of each team’s work and strengthens trust in the assessment.

Here are two effective ways to ensure this independence:

1. Separate Internal Teams: If your organization uses internal teams, establish a clear division between data collection and valuation. This setup means setting boundaries so each team has specific responsibilities and operates independently. While an assessor may oversee both teams, they should work autonomously to prevent unconscious influence. This structure allows data collectors to concentrate fully on gathering information without any pressure to align with valuation outcomes. It also enables appraisers to evaluate data with confidence, knowing the information they’re using is objective and reliable.

2. Use a Specialized Data Collection Firm: For even greater independence, consider hiring an external firm focused solely on data collection. Specialized firms bring additional benefits, such as heightened accuracy and efficiency through optimized processes, and they ensure transparency at every step. For example, CIDARE uses advanced technology like LiDAR to capture precise measurements with ±2-inch accuracy instead of ±1 foot, which enhances the reliability of valuations. These firms also adhere to clearly established standards and sophisticated tracking processes, documenting each stage—from initial data gathering to integration into the system. Their transparent process can help the assessor to build trust with their community and offers peace of mind to property owners, assessors, and regulators, knowing that the data comes from a neutral, reliable source.

Conclusion

Separating data collection from valuation is essential for a trustworthy and objective assessment process. This structure minimizes bias, strengthens the independence of each team’s role, and keeps data collection focused on accuracy while allowing valuation to focus on analysis. The dichotomy of separation ensures reliable results and builds confidence among property owners and regulators, while reinforcing an assessor’s reputation for fairness, transparency, and professionalism. The result - accurate valuations that property owners and regulators trust.