A Comparative Study of Valuation Variance and Accuracy between Nigeria and UK

Effiong, James Bassey

doi:10.18052/www.scipress.com/ILSHS.57.94

ILSHS > Volume 57 > A Comparative Study of Valuation Variance and...

< Back to Volume

A Comparative Study of Valuation Variance and Accuracy between Nigeria and UK

Full Text PDF

Abstract:

The study compared the level of valuation variance and inaccuracy between Nigeria and UK. In order to achieve the aim for the study, a survey method was employed using questionnaire administered on respondent estate surveyors and valuers in Calabar and Uyo metropolises. The study surveyed valuers opinions on the existence of valuation variance and inaccuracy, the possible causes and the margin of valuation error and data collected through questionnaire was analyzed using descriptive statistics to find the mean score, standard deviation and percentages. The findings from the study show that valuation variance and inaccuracy is high in Nigeria as compared to UK. The possible causes include lack of standards, lack of market data/comparables, lack of regulatory framework, methods/bases of valuation adopted, client’s influence, inadequate training of valuers, imperfect knowledge of the property market, wrong assumptions on cost per square metre, lack of professional experience as well as failure to discipline valuers on cases of negligence with lack of standards ranked first with the highest frequency and mean score. The study concluded by recommending the creation of a central property database, adopting/enforcement of international valuation standards, enforcement of disciplinary measures for erring members on negligence and a defined acceptable margin of valuation error.

Info:

Periodical:

International Letters of Social and Humanistic Sciences (Volume 57)

Pages:

94-105

DOI:

https://doi.org/10.18052/www.scipress.com/ILSHS.57.94

Citation:

J. B. Effiong, "A Comparative Study of Valuation Variance and Accuracy between Nigeria and UK", International Letters of Social and Humanistic Sciences, Vol. 57, pp. 94-105, 2015

Online since:

August 2015

Authors:

James Bassey Effiong

Keywords:

Accuracy, Causes, Inaccuracy, Nigeria, Standards, Valuation, Variance

Export:

RIS, BibTeX, Text

Distribution:

Open Access

This work is licensed under a
Creative Commons Attribution 4.0 International License

References:

Adair, A., Hutchison, N., MacGregor, B., McGreal, S., and Nanthakumaran, N. (1996). An analysis of valuation variance in the UK commercial property market: Hager and Lord revisited. Journal of property valuation and Investment, 14 (5), 34-47.

Ajibola, M. O. (2010). Valuation inaccuracy: An examination of the causes in Lagos Metropolis. Journal of Sustainable Development, 3 (4), 187-193.

Aluko, B. T. (1998). Property valuation: Are Estate Surveyors and Valuers interpreters or creators of value? The Estate Surveyor and Valuer, 21 (2), 9-17.

Aluko, B. T., Ajayi, C. A., and Amidu, A. R. (2004). The Estate Surveyors and Valuers and the Magic Number: A point estimate or range of value. International Journal of Strategic Property Management, 8 (3), 149-162.

Aluko, B. T. (2004). Reliability of Mortgage Valuation for Institutional Lending in Nigeria. International Journal of Strategic Property Management, 8 (4), 193-203.

Aluko, B.T. (2007). Examining valuer's judgment in residential property valuations in metropolitan Lagos. Journal of property Management, 25 (1), 98-107.

Ayedun, C. A., Oloyede, S. A., Iroham, O. C., and Oluwunmi, A. O. (2011). Clients' perception of the reliability of property investment valuation in Nigeria. Mediterranean Journal of Social Sciences, 2, (3), 479-486.

Ayedun, C. A., Ogunba, O. A., and Oloyede, S. A. (2011). Empirical verification of the accuracy of valuation estimates emanating from Nigerian valuers: A case study of Lagos Metropolis. International Journal of Marketing Studies, 3 (4), 117-128.

Ayedun, C. A., Oloyede, S. A., and Durodola, O. D. (2012). Empirical study of the causes of valuation variance and inaccuracy in Nigeria. Journal of International Business Research, 5 (3), 71-79.

Babawale, G. K. (2006). The growing concern over valuation accuracy in Nigeria. Journal of Land Use and Development Studies, 2 (1), 1-11.

Blundell, G. F., and Ward, C. W. R. (2008).

Boyd, T., and Irons, J. (2002). Valuation variance and negligence: The importance of reasonable care. Pacific Rim property Research Journal, 8 (2), 107-126.

Bretten, J., and Wyatt, P. (2001). Variance in commercial property valuations for lending purposes: An empirical study. Journal of Property Investment and Finance, 19 (3), 267-282.

Brown, G. (1985). Property investment and performance measurement: A reply. Journal of Property Valuation and Investment, 4 (1), 33-44.

Crosby, N., Devaney, S., Key, T., and Matysiak, G. (2003).

Hager, D. P., and Lord, D. J. (1985). The property market, property valuations and performance measurement. Journal of Institute of Actuaries, 112, 19-60.

Ibiyemi, A. O. (2013). Market Risks Consideration by Commercial Property Investors and Valuers in Nigeria: The Critical Issues. A 27th Inaugural Lecture of Lagos State Polytechnic, Ikorodu, Lagos. August 14, (2013).

Lizieri, C., and Venmore-Rowland, P. (1991). Valuation accuracy: a contribution to the debate. Journal of property Research, 8 (2), 115-122.

Matysiak, G., and Wang, P. (1995). Commercial Property Market Prices and Valuations: Analyzing the correspondence. Journal of property Research, 12 (3) 181- 202.

McAllister, P. (1995). Valuation Accuracy: A Contribution. Journal of property Research, 12 (3), 203-216.

Mokrane, M. (2002).

Ogunba, O.A., and Ajayi, C.A. (1998). An Assessment of the Accuracy of Valuations in the Residential Property Market in Lagos. Journal of the Nigerian Institution of Estate Surveyors and Valuers, 1 (2), 203-216.

Ogunba, O.A. (2004).

Ogunba, O. A., and Iroham, C. O. (2011). A Search for an Acceptable Margin of Valuation Error: A case study of valuers and their clients in Nigeria. Sri Lankan Journal of Real Estate, 4, pp.54-73.

Parker, D. (1998).

Skitmore, R. M., Irons, J. J., and Armitage, L. A. (2007). Valuation accuracy and variation: A Meta analysis. URL: http: /eprints. qut. edu. au/9485/1/9485_1. pdf (Assessed 8th February 2013).

Show More Hide

Cited By:

This article has no citations.