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Reis vs CoStar data?

Discussion in 'Commercial/Industrial Appraisals' started by Phil Sarazen, Sep 26, 2011.

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  1. Phil Sarazen

    Phil Sarazen New Member

    0
    Aug 13, 2005
    Professional Status:
    Certified General Appraiser
    State:
    California
    Has anyone used Ries Market reports, comps? Just looking for a comparison with CoStar.

    I realize CoStar is vastly more expensive in price but if the Ries data is inaccurate or incomplete...

    Any guidance is appreciated.

    Phil
     
  2. RebelNYC

    RebelNYC Sophomore Member

    0
    Aug 6, 2009
    Professional Status:
    Certified General Appraiser
    State:
    District of Columbia
    They both are useful. REIS isn't any more or less accurate, but the specifics are not available to you. For Costar, you can find out the specific metrics for each building that falls within your search critera.
     
  3. Michael S

    Michael S Senior Member

    12
    Mar 18, 2009
    Professional Status:
    Certified General Appraiser
    State:
    New Mexico
    I looked at CoStar's quarterly market report one time. Half the transaction they listed never occurred, or had occurred in previous quarters.

    I'm not familiar with REIS's data in my market. I do know that the submarkets they use are completely different than what everyone else in the market uses, and are pretty much worthless. I had a tutorial of their website from a sales rep and their comparable database was laughable. Maybe 5-10 sales over the last 3-4 years.

    CoStar's comps are hit or miss. Sometimes they've got most of the details and they're accurate. Frequently though they don't have the correct sale price (or any sale price). That comes with the territory of a non-disclosure state though. They're breadth of data is good as it at least provides a starting point for further research. I'd say they capture the majority of sale transactions in the market, especially the smaller deals that might otherwise be overlooked. LoopNet has got much better in our market over the last year. Still a lot less comps than CoStar but better listing data.
     
  4. PL1957

    PL1957 Senior Member

    8
    Jul 19, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Illinois
    Regardless of whether you use CoStar or Reis, any appraiser who considers this sale information "confirmed" is in for a rude surprise. These sources are best considered as leads.

    From what I've seen, CoStar info tends to be more comprehensive.
     
  5. Howard Klahr

    Howard Klahr Senior Member

    74
    Oct 4, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    The two companies approach market data from different angles. CoStar primarily is focused on sales and listings (Costar acquired Loopnet). REIS is focused more on supply and demand data such as segmented market inventory by property type (i.e. rents, vacancy, total space inventoried within the submarket, absorption).

    Although both data sources have data that overlap, the strengths of each are different.
     
  6. Bhurchey

    Bhurchey New Member

    0
    Oct 8, 2008
    Professional Status:
    General Public
    State:
    Massachusetts
    "Regardless of whether you use CoStar or Reis, any appraiser who considers this sale information "confirmed" is in for a rude surprise. These sources are best considered as leads.

    From what I've seen, CoStar info tends to be more comprehensive."

    I couldnt agree more, as much as CoStar helps find harder to get property sale data, the data is simply just "leads" - i find COUNTLESS error in the CoStar reporting - and in some cases some of the errors where HUGE
     
  7. Kali the Boston Terrier

    Kali the Boston Terrier Senior Member

    1
    Jul 7, 2003
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    Lately I have noticed CoStar is using foreclosure auction as a sale. Which In my state is generally just the note amount that is being foreclosed. The worst part is that they it is a confirmed sale.
     
  8. Michael S

    Michael S Senior Member

    12
    Mar 18, 2009
    Professional Status:
    Certified General Appraiser
    State:
    New Mexico
    I believe the CoStar researchers are either paid per comp or they have a relatively high threshold of comps they need to enter, thus the numerous errors or just plain missing data. Sometimes they'll nail it and have good information from the buyer and seller as far as motivation or details of the deal that wouldn't otherwise be apparent. For every comp like that there's 10 that either have no sale price, just the listing price, or a "confirmed" price that is wrong.
     
  9. foodstamps

    foodstamps New Member

    0
    Oct 2, 2011
    Professional Status:
    General Public
    State:
    Illinois
    As someone who is not a practicing appraiser, how would I go about confirming the sale price posted in CoStar? If it is so unreliable, then why does it seem to be the industry standard? Added to that, why would anyone want to pay so much for faulty data? Just for leads?
     
  10. Michael S

    Michael S Senior Member

    12
    Mar 18, 2009
    Professional Status:
    Certified General Appraiser
    State:
    New Mexico
    In a disclosure state check the public records available through the county assessor.

    In a non-disclosure state contact one of the parties involved and ask. Some people are willing to share, some are not.

    I'm used to CoStar's data in New Mexico which is nodisclosure. The only thing that's public record is the area of the land. A few counties have a bit more information. So CoStar doesn't have much to go from and they have to get information the same way as everyone else, except most brokers (who control the majority of the information) don't want to deal with CoStar.

    I've heard that in some markets CoStar has much more data and that it's more accurate. I have to say that even in New Mexico they usually have some information on just about every property, and that can be very valuable.
     
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