Finding Exact Geocoordinates
Example of Real Estate Valuation at vdpResearch
vdpResearch supports over 600 banks in Germany with real estate valuations. Exact geocoordinates are essential for these valuations. The company determines these coordinates by geocoding with the geocoder JoinAddress.
Case Study Overview
Application: Conversion of addresses into geocoordinates for further processing in GIS
Product: Geocoder JoinAddress
Goal: Exact coordinates as the basis for objective real estate valuations
Use: Geocoding of 600,000 - 700,000 addresses per year
“The JoinAddress Geocoder does exactly what it should: It quickly converts addresses into coordinates. It offers the high quality geocoordinates that we need at an affordable price.”
Andreas Kunert, Research Director at vdpResearch
vpResearch specializes in the analysis and forecasting of regional real estate markets in Germany in both the residential and commercial sectors. Two of the five umbrella associations of the German banking industry are shareholders of the company, namely the Association of German Pfandbrief Banks e.v. (vdp) and the National Association of German Cooperative Banks e.V. (BVR).
The vdpResearch analyses are data-driven and computer-supported. They serve to objectively and precisely measure the value of a property. “600 to 700 banks in Germany access our system and use vdpResearch's real estate valuation for their financing decisions,” says Andreas Kunert. Kunert is Research Director at vdpResearch and, with a team of four, is responsible for the geo-part within the real estate valuations.
Exact Geocoordinates are Essential for Reliable Real Estate Valuations
“Real estate valuation is a prime example of geocoding. Because without geocoding addresses there would be no geocoordinates, and without geocoordinates there would be no reliable valuation. It is important that the coordinates are very precise. A lot of information is provided by the geocoordinates which influence the value of the real estate (= property value), and help banks to reliably assess the risk of financing a property. It is therefore essential that the coordinates are very precise and not located 30 meters away. Just think of flood zones for example. 30 meters can make a big difference here and influence the risk enormously,” explains Kunert. “Our service is to provide the banks with an accurate overview of the value of the property and thus to provide a precise market value. Because price is not the same as market value. The price a buyer is willing to pay for a property can be different than the market value. Because the price is influenced, for example, by the buyer’s negotiating skills or personal relationship to the property. Banks however, need the actual market value of a property in order to assess the risk and be able to decide on its financing.”
JoinAddress Finds Exact Geocoordinates for over 600,000 Real Estate Valuations per YearvdpResearch provides software that German banks use to access 600,000 to 700,000 real estate valuations per year. The process is extremely simple for the bank advisors: The banker enters the address of the property to be financed into the tool. In a matter of seconds, the address is geocoded in the background using JoinAddress, enhanced with information and analyzed in the vdpResearch tool. The bank advisor receives the analysis results and the market value. “We geocode on the fly. This means: The moment the address is entered, it is geocoded. The geocoordinate is also enriched immediately. We mainly use the JoinAddress Server in combination with the WIGeoGIS database with geocoordinates for Germany. The geocoder solution is installed in-house for reasons of data protection. Geocoding via Google or other providers whose servers are located in the USA is not conceivable in the banking environment. The audit departments would not allow that,” says Kunert.
JoinAddress Web converts addresses into coordinates, shows the geocoding result in color on the map and enables geocoordinates or addresses to be called up and edited directly on the map.
Image reference: Images courtesy of vdpResearch
Want to find geocoordinates for addresses? The geocoder JoinAddress makes it quick and easy at an affordable price.
For Special Projects JoinAddress Web is Used
While vdpResearch uses JoinAddress as an in-house installation for normal operation, Kunert and Team use JoinAddress via a web interface for special projects, for example when 300 addresses have to be geocoded for a portfolio analysis. Kunert does the work himself directly: “The web version of JoinAddress has a nice feature with a tool that shows the accuracy of the determined geocoordinates in a color code. I can see the geocoding results at a glance and don't have to dig through unwieldy lists. Instead, I can immediately call up those addresses that appear to be incomplete or misspelled and correct these errors.”
Best Price-performance Ratio and Pleasant Cooperation
“Several providers were in the running when deciding on a geocoding solution.We chose WIGeoGIS for three reasons: The JoinAddress Geocoder does exactly what it should: It quickly converts addresses into coordinates. It offers the high quality geocoordinates that we need at an affordable price. WIGeoGIS offered the lowest price compared to other geocoding providers and at the same time higher quality. In addition, the cooperation with WIGeoGIS works smoothly and is extremely pleasant. This applies to both my direct contact person, Ms. Renate Dumberger, as well as to the technical service. We are completely satisfied. Our IT technicians are happy too, because everything always runs smoothly,” says the Research Director at vdpResearch.
Perhaps that is why the next project is already planned, in which vdpResearch will use a component from WIGeoGIS. In order to make the geocoding process even easier for the users, the address search tool QuickSearch is to be installed upstream in all products.
More Information and Case Studies on Geocoordinates and Geocoding
Check out more background information, products and case studies on “Finding geocoordinates” and geocoding. Or would you like to test JoinAddress directly free of charge and with no obligation? No problem! Register for a free geocoder trial and get started geocoding with 400 free addresses.
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