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Property Valuation Inaccuracy in Commercial Office Buildings: Establishing the Key Causative Factors
TL;DR: In this article, the causes of inaccuracy of property valuation in commercial office buildings in Nigeria were investigated using Mean Ranking, Regression and Factor Analysis (RFA) techniques. But, the study did not cover all classes of buildings as the scope of valuation is very enormous and the resources of this research were limited.
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Abstract: The paper aims to contribute to the empirical scarce literature on the causes of inaccuracy of property valuation in commercial office buildings by providing meaningful insights on the different causes likely to affect valuation accuracy in a developing country like Nigeria. Using Mean ranking, regression and factor analysis the causes have been ranked from a questionnaire distributed to a sample of 90 practitioners with a total of 61 completing the survey. The key findings of the statistical analysis indicated that professionals ranked the existing valuation methodology as the most established cause while only four of the causes make statistically unique contribution to the valuation methodology namely skill, experience and judgment of the valuer, types of property, the integrity of the individual Surveyor and lack of valuation standard manual. In a forward looking approach, the paper provides some recommendations that should minimise valuation inaccuracies in reports. The key limitation to the study is that it does not cover all classes of buildings as the scope of valuation is very enormous and the resources of this research were limited. Also, the use of closed ended questionnaires may limit the validity of the results. This research will be of interest to industry practitioners and academic researchers with an interest in property finance and valuation.
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Citations
An updated survey of factors influencing property valuation accuracy in Australia
TL;DR: In this article, the authors investigated the factors that contribute to property valuation inaccuracy and examined different strategies to achieve greater accuracy in practice, including developing a global mindset, use of advanced methodology and training valuers on market forecasting skills.
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Ranking the Causative Factors of Mortgage Valuation Inaccuracy in Kaduna Metroplois
Abstract: This paper is aimed at contributing to the scarce empirical literature on mortgage valuation by ranking the factors that influences mortgage valuation inaccuracy in the Kaduna Residential property market. A quantitative research approach using a survey design was adopted and structured closedended questionnaires were designed and administered to 57 registered Estate Surveying and Valuation (ESV) firms in Kaduna metropolis; 51 out of the 57 administered questionnaires were returned and used for analysis. A simple random sampling technique was employed and the 5-point Likert scale used as the scale of measurement, while causative factors were ranked using the Relative Importance Index (RII). The study analyzed the data using percentages. Findings indicated that data inadequacy, imperfection in the property market and clients’ pressure are the most trending in the absence of a unified valuation approach. The regulatory framework and valuation methodology are least contributory to valuation inaccuracy in the study area. The research will be of interest to practitioners and academic researchers interested in mortgage valuation as a guide for conducting mortgage valuation in the study area.
Causes of Valuation Inaccuracy in Mortgage Lending in Ethiopia
TL;DR: In this paper , the authors investigate the causes of valuation inaccuracy for mortgage purpose in commercial banks in Ethiopia and find that inappropriate valuation methods, the inadequacy of the market data, and property market imperfection were the most significant predictors.
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Client influence on valuation: Perceptual analysis of the driving factors
TL;DR: In this paper, the authors consider the theoretical potentials for client influence to bias valuations, and empirically analyse the factors impacting on the extent of influence client may exert on estate surveyors and valuers.
An investigation into the expression of uncertainty in property valuations
TL;DR: In this paper, the authors investigate how the property profession conveys this uncertainty to their clients and suggest that uncertainty must be dealt with in a professional manner in order to offer a reputable service to the general public.
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The response of Nigerian valuers to increasing sophistication in investors' requirements
O.A. Ogunba,C.A. Ajayi +1 more
TL;DR: In this article, a seven-stage model of UK valuation transition in the past 40 years, and used this in diagnosing the level of progress achieved in the Nigerian valuation Industry in the areas of accuracy, rationality and risk.
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