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.

No abstract

PurposeConsidering the changing dimensions of client influence in the emerging sub-market in Nigeria, different from previous general insinuations, this article examines the new strategies adopted by clients to influence estate surveyors and valuers (ESVs), factors that predispose ESVs to client influence and the effects of clients' influence on valuation outcomes and real estate markets in emerging sub-market, using Ibadan market as the study area.Design/methodology/approachThe paper is situated within a client influence assessment framework, modified to reflect contextual incidents. Contextualization was made possible with the involvement of both practitioners and academic researchers. Validated copies of the questionnaire were administered to the registered practicing ESVs in an intact group during their monthly state (provincial) meeting and through direct delivery at their firms. Data collected were analyzed using descriptive and inferential statistics.FindingsContrary to the previous studies, the authors found no significant relationship between ESV professional qualifications, the firm's staff strength and the frequency of clients' influence in valuation assignments. Hiding important information and clauses, begging, lobbying, and seeking undue favor and promises for future jobs or appointments are the influencing strategies clients employ to pressure valuer. The topmost factors are emerging sub-market and economic-induced factors, lack of due process, and adequate transparency on the parts of firms and Valuers. It was established that the new dimension of client influence leads to the mortgage valuation accuracy dilemma, discredit of professional confidence, default and financial distress, and generating mistrust in the property market.Practical implicationsThe implication is the new dimension of client influence, different from the previous studies, thus calling for professional and policy attention. As real estate investment and transactions transcend globally, understanding the local sub-market condition is imperative.Originality/valueThe novelty of the paper is the exposition on the dimensions of client influence within the economy and the implication for the professional body regulatory policy.

This study aimed to identify the core dimensions of problem solving of experts in commercial valuation in order to provide a rich stimulus for managing current practice and enabling future development.. Design/methodology/approach: The study adopted a cognitive position but emphasised understanding the everyday commercial property valuation practice in a naturalistic context and from the participants' perspectives. Given this, a grounded theory approach was employed as a research strategy to guide the data collection and surface theoretical interpretations. Data were obtained through in-depth interviews with practicing valuers working in private real estate firms within metropolitan Birmingham, UK Findings: The interviews uncover 4 dimensions of experts' problem solving practice in commercial valuation: (1) multidimensional, domain specific knowledge base, (2) cognitive process that is centred on analysis and reflection, (3) collaborative problem solving venture with colleagues, and (4) professional practice issues awareness. A conceptual model is proposed which integrates these dimensions enabling a clearer understanding of the nature of valuation work. Research limitations: This study was designed to be descriptive and theory generating, thus, the findings cannot be generalised as the sample was confined to one city and consists of a small number of senior practicing valuers. Therefore, the findings may not be fully applicable to other practicing valuers, other geographical locations or more widely to other types of property valuation. Nevertheless, the findings provide an important cognitive framework which can be verified by other researchers seeking to examine the practice of expert valuers. Practical implications: The identification of the core dimensions of expert problem solving in commercial property valuation is shown to have implications for valuation practice, education and continued research. The valuation practice environments need to develop mechanisms to provide time that would enable these multi-dimensions of professional Originality/value: This study expands the current understanding of valuation process to areas of expertise that have received less coverage in behavioural valuation literature, that is, the central role of knowledge and cognition and how these are applied for effective valuation problem solving and decision making.

No abstract