Recent behavioural real estate research effort on valuation bias judgement suggests that client influence is an important source of such bias. This paper, therefore, considers 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. To accomplish this aim, questionnaires were randomly administered to samples of estate surveyors and valuers in Lagos Metropolis. Using mean rating point, the survey ranked three factors; integrity of valuer or valuation firm, importance of the valuation outcome to the client and client size, as the most significant clients’ influencing factors. The results of the Chi‐square test did not, however, provide any statistical relationship between the size of firm, amount of experience and education of estate surveyors and valuers and their perception on the comparative importance of the identified clients’ influencing factors. Klientų įtaka vertinimui: pagrindinių veiksnių suvokimo analizė Santrauka Neseniai atlikti nekilnojamojo turto vertinimo šališkumo elgsenos tyrimai rodo, kad kliento įtaka ‐ svarbus tokio šališkumo šaltinis. Todėl šiame darbe svarstomas klientu įtakos vertinimo šališkumui teorinis potencialas ir empiriškai analizuojami veiksniai, lemiantys kliento įtakosnekilnojamojo turto vertintojams mastą. Rengiant ši darbą, buvo apklausti respondentai ‐ atsitiktine tvarka parinkti nekilnojamojo turto vertintojai iš Lagoso miesto. Apskaičiuojant vidurki, apklausos metu balais įvertinti trys veiksniai yra svarbiausi, kuriems klientas gali daryti įtaka ‐ tai vertintojo arba vertinimo firmos sąžiningumas, vertinimo rezultatu svarba klientui ir kliento dydis. Tačiau chi kvadrato testo rezultatai neparodė jokio statistinio ryšio tarp įmones dydžio, turto vertintoju patirties bei išsilavinimo ir to, kaip jie supranta nustatytųjų klientu įtakos veiksniu lyginamąja svarba.
Purpose -In recent years, studies have established that valuation estimates are likely to be biased estimates of market values due to client influence. These studies, which have made a significant contribution to real estate literature, were based mainly on UK, USA and New Zealand experience. The purpose of this paper is to examine the prevalence of client influence and the impact on valuation in Nigeria. Design/methodology/approach -A questionnaire survey was administered to estate surveyors and valuers to gauge their professional opinion with regard to client influence, sources of such influence and types of threats used by clients. A behavioural experiment, incorporating two non-valuation factors, was also included for the respondents to role-play the decision of an estate surveyor and valuer subject to an ethical dilemma. Findings -The survey revealed that nearly 80 per cent of estate surveyors and valuers claimed some knowledge of client influence, mostly from a private individual. The results of the logistic regression model also indicated that the decisions of estate surveyors and valuers as to whether to alter valuation outcome upon clients' request are not affected by either of the two non-valuation factors (client size and value adjustment). Research limitations/implications -It is recognised that the findings from the behavioural experiments (role play) utilised in the survey, may or may not be a true reflection of the real world responses of estate surveyors and valuers. Originality/value -The paper contributes significantly to the empirical literature on behavioural real estate research. In particular, the findings from the study could serve as a framework for improving Estate Surveyors and Valuers Guidance Notes of 1985 to ensure transparency in the valuation process.
The emerging concern on the reliability of property valuations coupled with the attendant consequences of growing number of distressed banks in Nigeria necessitate this study. Therefore, the study examined the mortgage valuation process including sources of valuation instructions, bases and methods being adopted and their implications on lending decisions and valuation profession in the study area. To accomplish the study, questionnaires were randomly administered on samples of estate surveying and valuation firms and lending institutions respectively in Lagos Metropolis. The data emanating there from were analysed using frequency distributions, ranking mean and relative important index ranking. The study, prima facie, established that mortgage valuation has been an important input in lending decisions. It further showed the implications of the blind adoption of the cost approach, inconsistency amongst valuers and non ‐ inclusion of insurance valuation in the mortgage valuation process. Būsto paskolų vertinimas Nigerijoje: esamų tendencijų prasmė Santrauka Ši tyrimą paskatino didėjantis rūpestis dėl nekilnojamojo turto vertinimu variantiškumo bei tikslumo ir nuskurdusiu Nigerijos banku sukelti padariniai. Kadangi, priimant sprendimą suteikti paskola, vertinti ja būtina, tyrimo išvados galbūt padėtu ieškoti politiniu sprendimu dėlnesuvaldomo banku žlugimo šalyje. Todėl darbe nustatyta ir ištirta būsto paskolų vertinimo svarba, įskaitant vertinimo instrukcijų šaltiniu, pagrindu ir taikomu metodu reikšme, nagrinėtas būsto paskolų vertinimas, priimat sprendimus suteikti paskola, ir vertintojo profesija šioje srityje. Anketomis ir pokalbiu metu apklaustos 59 atsitiktine tvarka atrinktos turto tikrinimo bei vertinimo firmos (iš 146 aktyviai veikiančiu; iš viso yra 239 tokio pobūdžio firmos) ir 42 skolinančios institucijos iš 89, veikiančiu Lagose. Gauti duomenys išanalizuoti skaičiuojant pasiskirstymą, garantavimas ir santykines svarbos indeksą. Tyrimu nustatyta, kad teikiamas paskolas vertinti yra svarbu. Tolesne analize parodę, kad į būsto paskolų vertinimąneįeina draudimo vertinimas, aklai pasirenkamas sąnaudųaspektas ir vertintoju nuomones dėl būsto paskolų skiriasi. Tai, kas išdėstyta, skirta vertintojams, skolintojams arba kitiems vertinimo paslaugu vartotojams ir turto rinkai apskritai.
Purpose -The purpose of this paper is to examine the factors that have influenced the use of implicit (naïve) techniques in property portfolio diversification evaluation in the Nigeria property market. This is necessitated by the need to look at the ways by which the property portfolio diversification evaluation practice in the market could be made to improve and adjust to ever changing global trends in this area. Design/methodology/approach -The authors of this paper administered questionnaires, backed up with interviews, on 28 institutional property investors and 128 real estate practitioners in three locations (commercial nerve centres) of the country, namely, Lagos, Abuja and Port-Harcourt metropolitan areas. Data were analysed with the use of frequency distribution, mean and standard deviation measures, relative importance index and Pearson Chi-Square test. Findings -The results of the study in this paper revealed, among others, that lack of time series data and the small size of many of the investors' portfolios in Nigeria encouraged the use of implicit analysis in their property portfolio evaluation techniques. The study also showed that investors and practitioners detest complex calculations and were using traditional evaluation techniques because they considered the methods as needing no pre-requisite knowledge before they could be used. Practical implications -The study in the paper concluded that there is the need for a restructuring of the Nigerian real estate education and portfolio evaluation practice and the use of a micro-real estate specific data derived from local market information to develop property performance indices towards building up functional real estate indices at the regional and national levels. Originality/value -This paper is a pioneering attempt at establishing the factors that influenced the use of implicit techniques in property portfolio diversification evaluation in emerging property markets like Nigeria.
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