Client pressure in the commercial appraisal industry: how prevalent is it?

Kinnard, William N.; Lenk, Margarita M.; Worzala, Elaine

doi:10.1108/14635789710184952

Cited by 61 publications

(53 citation statements)

References 5 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Appraisers revealed on the postal survey/ experiment by kinnard, Lenk and Worzala (1997) that they felt pervasive client pressure and had a tendency to succumb to it especially when exerted by important clients and regardless of the size of the desired adjustment. Levy and Schuck (1999) found that both sophisticated pressure, based on the use of property and market information, and unsophisticated pressure, based on the threat of withholding fee payments or future assignments, were applied to appraisers.…”

Section: Literature Review and Research Hypothesismentioning

confidence: 99%

A Taxonomic Field Investigation in to Induced Bias in Residential Real Estate Appraisals

Díaz

Hansz

2010

International Journal of Strategic Property Management

View full text Add to dashboard Cite

ABstRACt.A taxonomic approach to field research was developed and utilized to support empirical and experimental research findings into the impact that incentives/pressures to overvalue have on systematic valuation bias. An expected no-bias population was defined and valuation judgments from actual, real-world appraisals were statistically tested against it. The judgments of appraisers presented with no incentive/pressure to over-value were consistent with the no-bias population, while the judgments of appraisers presented with incentive/pressure to over-value were significantly incompatible with the defined no bias population.

show abstract

Section: Literature Review and Research Hypothesismentioning

confidence: 99%

A Taxonomic Field Investigation in to Induced Bias in Residential Real Estate Appraisals

Díaz

Hansz

2010

International Journal of Strategic Property Management

View full text Add to dashboard Cite

show abstract

“…The valuer understands the financial implications of withdrawn transactions to clients and at the same time seeks a long-term business relation. This potentially creates a moral hazard issue for valuers with regard to deciding on an appropriate market value estimate (Cho & Megbolugbe, 1996;Kinnard, Lenk, & Worzala, 1997). In turn, the principal's awareness of this moral hazard issue opens the door for client influence.…”

Section: Professional Autonomy In Real Estate Valuationmentioning

confidence: 99%

“…The Smolen and Hambleton (1997) were among the first to provide -anecdotal -evidence of valuation revision, as surveyed valuers stated that 82% of peer valuers would accommodate unrealistic client demands. Kinnard et al (1997) and Worzala et al (1998) compare actual value revision pressure between commercial and residential valuers and conclude that 32% of residential valuers and 41% of commercial valuers did revise their valuation estimates. Interestingly, while commercial valuers appear significantly influenced by client size in their revision decisions, residential valuers are not.…”

Section: Interpersonal Valuer Judgement Biasmentioning

confidence: 99%

Research bias in judgement bias studies – a systematic review of valuation judgement literature

Klamer

Gruis

2017

Journal of Property Research

View full text Add to dashboard Cite

a faculty of economics and Management, hu university of applied sciences, utrecht, the netherlands; b faculty of humanities, utrecht university, utrecht, the netherlands; c faculty of education, hu university of applied sciences, utrecht, the netherlands; d faculty of architecture and the Built environment, Delft university of technology, Delft, the netherlands ABSTRACT Valuation judgement bias has been a research topic for several years due to its proclaimed effect on valuation accuracy. However, little is known on the emphasis of literature on judgement bias, with regard to, for instance, research methodologies, research context and robustness of research evidence. A synthesis of available research will establish consistency in the current knowledge base on valuer judgement, identify future research opportunities and support decision-making policy by educational and regulatory stakeholders how to cope with judgement bias. This article therefore, provides a systematic review of empirical research on real estate valuer judgement over the last 30 years. Based on a number of inclusion and exclusion criteria, we have systematically analysed 32 relevant papers on valuation judgement bias. Although we find some consistency in evidence, we also find the underlying research to be biased; the methodology adopted is dominated by a quantitative approach; research context is skewed by timing and origination; and research evidence seems fragmented and needs replication. In order to obtain a deeper understanding of valuation judgement processes and thus extend the current knowledge base, we advocate more use of qualitative research methods and scholars to adopt an interpretative paradigm when studying judgement behaviour.

show abstract

“…It could be arguable then that this situation could expose the agent to various forms of influence by these principals so as to attain their whims as has been established in real estate valuation process (Amidu and Aluko, 2007;Baum et. al., 2000;Chinloy, Cho and Megbolugbe, 1997;Cho and Megbolugbe, 1996;Crosby et al, 2004;Iroham, 2007;Kinnard, Lenk and Worzala, 1997;Ogunba, 1997) Chen and Yu (2009) attempted to analyze client influence on valuation both in Taiwan and Singapore. The choice of both countries was due to their similar level of economic development as well as professionalism amongst valuers practicing in the countries.…”

Section: Introductionmentioning

confidence: 99%

An Exposition on Principals’ Influence in Real Estate Negotiation

Iroham¹,

Oluwunmi²,

Oluwatobi³

2011

IJMS

View full text Add to dashboard Cite

The conflicting interest between principals' and the intermediary role played by Estate Surveyors and Valuers during real estate negotiation could prone the latter to influence from these principals' as evident in valuation. The research which entailed a survey of 159 Estate Surveyors and Valuers in Lagos metropolis was analyzed with the use of descriptive statistics and the Relative Important Index. It was discovered that potential tenants are most apt in influencing real estate negotiation which is usually carried out with the use of reward powers and information power where pecuniary gains are offered to Estate Surveyors and Valuers in order to accomplish their whims while access to information by these principals are also used against the Estate Surveyor and Valuer working in an unfamiliar terrain respectively.The researchers therefore opines that a wakeup call by both the Nigerian Institution of Estate Surveyors and Valuers and the Estate Surveyors and Valuers Registration Board of Nigeria in curbing the prevalence of this influence will help preserve the integrity of the Estate Surveying and valuation profession.

show abstract

Client pressure in the commercial appraisal industry: how prevalent is it?

Cited by 61 publications

References 5 publications

A Taxonomic Field Investigation in to Induced Bias in Residential Real Estate Appraisals

A Taxonomic Field Investigation in to Induced Bias in Residential Real Estate Appraisals

Research bias in judgement bias studies – a systematic review of valuation judgement literature

An Exposition on Principals’ Influence in Real Estate Negotiation

Contact Info

Product

Resources

About