Information asymmetry and real estate
Author: Drew Phillips
Project: IIHS and IIIT-B | Urban Informatics Portal
Year: 2015
Bangalore, India
Information asymmetry in business transactions can lead to what is un-academically termed a “rip-off”. The classic example is a car sale: the seller knows more about the car’s history and true value than the buyer, who probably does not. The seller can easily take advantage of the buyer unless the buyer has access to car history reports, mechanic’s evaluations, and blue book values. Our project aims to address information asymmetry not in auto buying but in Bangalore’s property market. We are doing so by making property valuation easier to determine for buyers so that they can make more informed financial decisions.
Specifically, we are mapping guidance values: the minimum price per unit property area (rupees per square meter) that a seller can charge. The Indian government bases a property tax, called stamp tax, on guidance values. They are set at the neighborhood level but are hard to determine based on area because the official guidance value website does not specify neighborhood boundaries. Our team is developing a web mapping application to allow users and urban researchers to easily access guidance values by neighborhood.
I have been surprised by the range of skills required to successfully implement this project, many of them non-technical. Certainly, building this system requires artistic skills (provided by our resident designer, Betsy), mapping skills (our GIS master, Frank), and web development skills (coding pro Malcolm). But organization and communication are just as important. Though challenging, I’ve enjoyed coordinating our project with a highly capable team thousands of miles away. I’ve benefitted greatly from the “soft” skills we’re learned in class, such as conflict resolution and negotiation from a position of low power. I like how much we’re learned from one another; Frank, Betsy, and I are all improving our javascript skills and Malcolm is gaining experience in mapping. Most importantly, I’m learning how to manage, delegate, and gain technical skills to best support my team and our project.
Project: IIHS and IIIT-B | Urban Informatics Portal
Year: 2015
Bangalore, India
Information asymmetry in business transactions can lead to what is un-academically termed a “rip-off”. The classic example is a car sale: the seller knows more about the car’s history and true value than the buyer, who probably does not. The seller can easily take advantage of the buyer unless the buyer has access to car history reports, mechanic’s evaluations, and blue book values. Our project aims to address information asymmetry not in auto buying but in Bangalore’s property market. We are doing so by making property valuation easier to determine for buyers so that they can make more informed financial decisions.
Specifically, we are mapping guidance values: the minimum price per unit property area (rupees per square meter) that a seller can charge. The Indian government bases a property tax, called stamp tax, on guidance values. They are set at the neighborhood level but are hard to determine based on area because the official guidance value website does not specify neighborhood boundaries. Our team is developing a web mapping application to allow users and urban researchers to easily access guidance values by neighborhood.
I have been surprised by the range of skills required to successfully implement this project, many of them non-technical. Certainly, building this system requires artistic skills (provided by our resident designer, Betsy), mapping skills (our GIS master, Frank), and web development skills (coding pro Malcolm). But organization and communication are just as important. Though challenging, I’ve enjoyed coordinating our project with a highly capable team thousands of miles away. I’ve benefitted greatly from the “soft” skills we’re learned in class, such as conflict resolution and negotiation from a position of low power. I like how much we’re learned from one another; Frank, Betsy, and I are all improving our javascript skills and Malcolm is gaining experience in mapping. Most importantly, I’m learning how to manage, delegate, and gain technical skills to best support my team and our project.
