Why Incomplete Data is Inflating Your Deal Size and Costing You Millions
Kaushik Mahorker
4 min read
Incomplete or outdated property data can lead to inflated deal sizes, costing real estate investors millions in the long run. This post breaks down how relying on inaccurate comps, missing local trends, and manual data entry errors can lead to overpaying for properties. Learn how real-time, automated tools can help ensure accurate valuations, reduce deal size inflation, and maximize your ROI. Stop overpaying and start making data-driven decisions that protect your bottom line.
When evaluating properties, every detail counts. Unfortunately, incomplete data can lead to overestimated deal sizes—and it could be silently draining millions from your bottom line.
Here’s how relying on incomplete property data is inflating your deals and what you can do about it.
1. Incomplete Comps = Inflated Offers
When you rely on incomplete or outdated comps, you might be working with half the story. Without access to the most recent sales data and listings, it’s easy to overvalue properties.
Think about this:
You pull comps from three properties sold six months ago, but the market has since slowed down. If you miss recent sales that reflect a drop in market value, you’ll likely overpay.
👉 Result: You’re inflating your deal size, paying more than you should, and eating into your profits.
2. Local Trends Matter—Don’t Miss Them
Real estate markets are hyperlocal. Factors like neighborhood growth, zoning changes, and local demand can make or break a deal.
If you’re not incorporating the latest local market data, you might end up pricing a property too high. This could mean overpaying based on incomplete or irrelevant information from broader market trends.
The danger?
You’re exposed to unnecessary risk because your valuation doesn’t account for localized factors that might drive prices lower.
3. Manual Data Entry = Expensive Mistakes
Let’s face it—manual processes can lead to costly errors. Whether it’s an overlooked comp, an incorrect square footage, or a miscalculation in expenses, these small errors can lead to inflated deal sizes.
Consider this:
If your team enters the wrong building size or leaves out a comparable sale, your valuation could be off by thousands. By the time you catch the mistake, it’s too late—you’ve already locked in a higher offer.
💸 Small errors = millions lost over the long run.
4. Stale Data in a Fast-Moving Market
Relying on static data means you’re always one step behind. The market changes fast, and if you’re using stale or incomplete data, you might be overestimating property values by the time you submit an offer.
Example:
You use last month’s comps to make a decision, but the market has already shifted downward. By the time you act, your deal size is inflated, and the market won’t support the price you’ve locked in.
📉 Outdated data = outdated offers.
5. Missed Opportunities from Slow Evaluations
Incomplete data means you spend more time filling in the gaps, leaving you stuck in the evaluation process. Meanwhile, better-priced opportunities slip through your fingers.
The result?
While you’re busy piecing together the puzzle, other investors are closing on deals with real-time, accurate data.
🚪 Slow processes = missed opportunities.
The Bigger Picture: How Incomplete Data Drains Your Portfolio
Beyond inflating deal size, incomplete data impacts your entire portfolio:
- Higher purchase prices reduce your ability to reinvest.
- Lower ROI from overpaying limits long-term portfolio growth.
- Increased risk exposure means you're more vulnerable to market shifts.
The Fix: Leverage Complete, Real-Time Data
The key to avoiding inflated deal sizes is complete, up-to-date data. AI and automated tools provide real-time property insights, giving you a complete picture of a property’s true value.
Benefits of Automation:
- Instant comps: Get accurate property values without waiting.
- Real-time market trends: Adjust valuations based on the latest data.
- Fewer manual errors: Automation reduces costly mistakes that inflate deal size.
Conclusion: Don’t Let Incomplete Data Cost You Millions
Incomplete data can inflate your deal size and lead to millions in lost returns over time. By using real-time, automated tools, you can ensure you’re making the smartest decisions and avoiding the pitfalls of overpaying.
It’s time to take control of your data—and your deal sizes.