Press Information
For Immediate Release --April 30 2009
Andrew Koutsoukos
Phone: 415-381-1750
Email: andrew@boundarysolutions.com
Boundary Solutions, Inc.

S U M M A R Y - IAAO Fair & Equitable Magazine Article -Transparency Increases Property Values

Mill Valley, CA: At the last annual conference attended by all the Nation's Assessors (International Association of Assessing Officials 08), a data sharing panel put on by Boundary Solutions, Inc., a national parcel map information provider, tackled the question “Does transparency in property records stimulate the economy?” The panel's answer published by the IAAO reveals those counties that shared their parcel map data for just the cost-of-reproduction enjoyed greater property tax base growth during the 2001-2006 bubble than counties that charged a lot of money. To make this claim, the total assessed value all the parcels in each county for each year were attained thanks to the cooperation of 46 State Revenue Departments. These annual report records from 90% of all USA counties were combined with the total permits issued per county per year (thanks to HUD) along with each county's parcel map data licensing fee during this same period. As seen below, the combined value of new development and increased valuation of existing development grew 27% faster, on average, in cost-of-reproduction counties than cost-recovery counties.

But why would simply making information available to all cause such a huge difference in tax base growth? Closed record advocates insist it’s only a coincidence! However, the panel’s reasons present a compelling argument that this time science trumps coincidence. Further, these real estate market measurements offer a clear metaphor to all markets - - stock, bond, banking - - of the very real value-add transparency brings to the general population too attractive to ignore.

SOURCE: BSI National ParcelMap Data Portal Metadata Profile Database

The most obvious reason for accelerated tax base growth in open records counties is that transparency attracts capital. Given a choice, investors choose bright sunshine rather than dark and murky, be it buying a property or a stock trade. Further, most also agree that maximum market is only possible when all possible investors are participating. But this is only possible when everyone can see all public records (not just those who can afford to pay “barrier-to-entry” prices). Baring the fool who will play 5 card stud when dealt only 3 cards, refusal by the less capitalized to play precludes maximum participation, hence, market. Reducing or eliminating data fees quickly increases market participation. Prodigal investor activity contributes directly to the bottom line plus this new activity attracts more investment. Further, increased participation increases competition, causing what gets built to be of higher quality, further contributing to location desirability. However, the main impact of open records is that highly reduced transaction cost enjoyed by all rather than just a few makes for a more robust investment environment. Combine modern property information infrastructure with perceived increased quality of the built environment - - and there goes the neighborhood … UP, along with property tax base valuations. Conversely, lack of transparency is conducive to a local government style that advances only those able to assure the reelection of the incumbents, an impediment to economic vitality. This is not to say that lack of transparency causes corruption, but the increased convenience it offers the unscrupulous to operate undetected does.

So, President Oboma. Your campaign was in large part "it's transparency, Stupid. So you want to emphasize the importance of transparency? So you want to use transparency to do battle with corruption. Apply this real estate market outcome as a metaphor to all markets. Figure out a way to measure performance over time and compare results in cases where everything can be seen by everyone vs. opaque, where nothing can be seen but by those manipulating reality until collapse follows folly.

BSI is the custodian of the National Parcel Map Data Portal (NPDP™). As of April 2009, a total of 74 million parcel boundary polygons from 620 jurisdictions are normalized and ready for download. Regardless of source format, all content is subjected to over 30 software driven modifications and metric recordings to assure universal internal consistency highly convenient geoserver loading. NPDP content is available as downloads from the NPDP FTP Site or on a transaction basis using ISC ParcelAtlas, r7 GeoRoom, Placebase Pushpin or ESRI ArcWebServices geoserver platforms. The USPTO awarded Boundary Solutions Inc. Patents 7,092,957 & 7,499,946, and 7,516,156 entitled “Computerized National Online Parcel-level Map Data Portal.” Claims include multi-state search to locate an address by displaying its corresponding digital parcel map boundary and the processing of change layer updates for the NPDP. The original provisional patent application was filed January 18, 2002. Boundary Solutions, BSI, Boundary Solutions logo, National ParcelMap Data Portal, NPDP, and Rooftop Accuracy are trademarks of BSI. All other trademarks and company names mentioned are the property of their respective owners.