Property valuation problems and market context – evidence from Kenya

Cheloti, Irene; Mooya, Manya M.

doi:10.1080/09599916.2022.2119879

Cited by 3 publications

(3 citation statements)

References 22 publications

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“…Valuation methods are based on the ideas of the neoclassical economics theory that assumes a perfect market with full information, rational investors, homogenous product and equilibrium conditions (Mooya, 2016). However, the actual property market is imperfect, characterised by limited information, investors with bounded rationality, heterogeneous products and multiple equilibria (Cheloti and Mooya, 2022; Mooya, 2016). This may explain the mismatch between education and training and actual material conditions.…”

Section: Discussionmentioning

confidence: 99%

“…In Kenya, this method is mainly used to value residential properties whose market is fairly active compared to commercial and industrial properties. However, the nature of the property market in Kenya, characterised by limited and unreliable information, limits the use of this method (Cheloti and Mooya, 2022). According to Mooya (2016), the market approach requires sufficiently competitive markets to work well, with its applicability limited in environments with poor information.…”

Section: Data Analysis and Presentationmentioning

confidence: 99%

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An assessment of valuation education and training in Kenya in comparison with practice

Cheloti

Mooya²

2022

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PurposeThis paper examines participants' opinions on whether valuation education and training in Kenya is adequate while comparing it to actual material conditions.Design/methodology/approachThis research is based on a survey of registered and practicing valuers in Kenya, interviews of key informants from professional bodies and the five universities offering real estate degree courses in Kenya, and a review of Kenya's real estate curricula and Institution of Surveyors of Kenya (ISK) training.FindingsIt was perceived that while valuer education and training in Kenya is satisfactory, it differs from actual material conditions as it fails to cover practical issues in valuation practice.Originality/valueThe study makes a critical contribution to the empirical literature by introducing new insights in valuation education and training in Kenya.

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Section: Discussionmentioning

confidence: 99%

Section: Data Analysis and Presentationmentioning

confidence: 99%

An assessment of valuation education and training in Kenya in comparison with practice

Cheloti

Mooya²

2022

Self Cite

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“…For instance, the sales comparison approach works well in sufficiently competitive markets, with its applicability limited in markets with poor information (Mooya, 2016). Notably, the sales comparison method is embedded in all valuation methods; it is useful in assessing the land value component in the cost approach and market rent and the rate of return in the income approach (Cheloti and Mooya, 2023).…”

Section: Introductionmentioning

confidence: 99%

Client influence on property valuation in Kenya. Does the valuation environment matter?

Cheloti,

Mooya

2023

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PurposeThis paper examines the effects and root causes of client influence within the valuation profession in Kenya.Design/methodology/approachThis study adopted a mixed research design incorporating a survey and experiment of registered and practising valuers in Kenya and interviews of key informants from registered and practising valuers, valuers' clients (commercial banks) and professional bodies.FindingsThe study found that client influence negatively impacts the valuation profession, contributing to inaccurate valuation outcomes, and it exists because of the valuation environment, represented by limited and unreliable information in Kenya and many other developing countries.Originality/valueThis study makes a critical contribution to the empirical literature as it introduces new insights into the impacts and causes of client influence by demonstrating how the valuation environment, characterised by poor information, contributes to client influence in Kenya, which is typical of many other developing countries.

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Approaches to improving valuation decision-making: a review of the literature

Liman,

Amidu,

Levy

2024

JPIF

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PurposeThe complexity of property valuation, coupled with valuers’ cognitive limitations, makes some degree of error inevitable in valuations. However, given the crucial role that valuations play in the efficient functioning of the economy, there is a need for continuous improvement in the reliability of reported values by enhancing the quality of the decision-making process. The purpose of this paper is to review previous research on valuation decision-making, with particular interest in examining the approaches to improving the quality of valuation decisions and identifying potential areas for further research.Design/methodology/approachThe paper adopts a narrative approach to review 42 research articles that were obtained from Scopus and Web of Science databases and through author citation searches.FindingsOur findings show that existing literature is skewed towards examining the use of technology in the form of decision support systems (DSS), with limited research attention on non-technological (i.e. behavioural) approaches to improving the quality of valuation decisions. We summarise the non-technological approaches and note that much of the discussions on these approaches often appear as recommendations arising from other studies rather than original investigations in their own rights.Practical implicationsWe conclude that studies investigating the effectiveness of the non-technological approaches to improving valuation decision-making are lacking, providing various avenues for further research.Originality/valueThis paper presents the first attempt to provide a comprehensive overview of non-technological approaches to improving the quality of valuation decisions.

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Property valuation problems and market context – evidence from Kenya

Cited by 3 publications

References 22 publications

An assessment of valuation education and training in Kenya in comparison with practice

An assessment of valuation education and training in Kenya in comparison with practice

Client influence on property valuation in Kenya. Does the valuation environment matter?

Approaches to improving valuation decision-making: a review of the literature

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