Modern Methods of Valuation

Shapiro, Eric; Mackmin, David; Sams, Gary

doi:10.1201/9781315145419

Cited by 28 publications

(35 citation statements)

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“…Therefore, the professional bodies should work with educational institutions to ensure that advanced valuation methods, in particular, the AI approaches, are introduced into the real estate programmes’ curriculum so that such knowledge would be built upon in practice. By this, the estimation of more accurate valuation figures may be close in view, when valuers combine their industry knowledge (local and international markets) with data and technology (Hager and Lord, 1985; Shapiro et al , 2012; Schneider, 2016).…”

Section: Resultsmentioning

confidence: 99%

“…Property asset valuations are requested by different stakeholders for various reasons ranging from sales, purchases, merger and acquisition, going concern, taxation and mortgage (Shapiro et al , 2012). In estimating the value of different properties for these purposes, valuers do adopt different methods of property valuation.…”

Section: Literature Reviewmentioning

confidence: 99%

“…However, it should be noted that no single valuation method can be applied to all valuation exercises (Tse, 1997; Pagourtzi et al , 2007). Also, a valuer is expected to possess the good knowledge and understanding of the subject property market in order to estimate an accurate valuation figure (Hager and Lord, 1985; Shapiro et al , 2012). See Pagourtzi et al (2003) and French (2004) for more details of traditional and advanced valuation methods, while their respective merits and demerits are discussed by Lam et al (2008) and Abidoye and Chan (2016).…”

Section: Literature Reviewmentioning

confidence: 99%

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Property valuation methods in practice: evidence from Australia

Abidoye

Lam

et al. 2019

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Purpose Improving valuation accuracy, especially for sale and acquisition purposes, remains one of the key targets of the global real estate research agenda. Among other recommendations, it has been argued that the use of technology-based advanced valuation methods can help to narrow the gap between asset valuations and actual sale prices. The purpose of this paper is to investigate the property valuation methods being adopted by Australian valuers and the factors influencing their level of awareness and adoption of the methods. Design/methodology/approach An online questionnaire survey was conducted to elicit information from valuers practising in Australia. They were asked to indicate their level of awareness and adoption of the different property valuation methods. Their response was analysed using frequency distribution, χ2 test and mean score ranking. Findings The results show that the traditional methods of valuation, namely, comparative, investment and residual, are the most adopted methods by the Australian valuers, while advanced valuation methods are seldom applied in practice. The results confirm that professional bodies, sector of practice and educational institutions are the three most important drivers of awareness and adoption of the advanced valuation methods. Practical implications There is a need for all the property valuation stakeholders to synergise and transform the property valuation practice in a bid to promote the awareness and adoption of advanced valuation methods, (e.g. hedonic pricing model, artificial neural network, expert system, fuzzy logic system, etc.) among valuers. These are all technology-based methods to improve the efficiency in the prediction process, and the valuer still needs to input reliable transaction data into the systems. Originality/value This study provides a fresh and most recent insight into the current property valuation methods adopted in practice by valuers practising in Australia. It identifies that the advanced valuation methods could supplement the traditional valuation methods to achieve good practice standard for improving the professional valuation practice in Australia so that the valuation profession can meet the industry’s expectations.

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Section: Resultsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Property valuation methods in practice: evidence from Australia

Abidoye

Lam

et al. 2019

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“…The complexity of the subject property in terms of design, age, material specification and state of repairs is ranked as the third important factor with an RII of 0.692. This could be attributed to the uniqueness of real estate assets (Sirmans et al , 2005), which could be interpreted differently by valuers (Shapiro et al , 2012). This result is similar to the results reported by Babawale and Omirin (2012) and corroborates the fact the valuers' good knowledge of the subject property market and ability to inspect and understand complex properties is necessary to achieve accurate valuation figures (Hager and Lord, 1985).…”

Section: Resultsmentioning

confidence: 99%

An updated survey of factors influencing property valuation accuracy in Australia

Abidoye

Huang

Amidu

et al. 2021

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PurposeThis study updates and extends the current work on the issue of accuracy of property valuation. The paper investigates the factors that contribute to property valuation inaccuracy and examines different strategies to achieve greater accuracy in practice.Design/methodology/approachAn online questionnaire was designed and administered on the Australian Property Institute (API) registered valuers, attempting to examine their perceptions on the current state of valuation accuracy in Australia. The variables/statements from responses are ranked overall and compared for differences by the characteristics of respondents.FindingsUsing mean rating point, the survey ranked three factors; inexperience valuers, the selection, interpretation and use of comparable evidence in property valuation exercise and the complexity of the subject property in terms of design, age, material specification and state of repairs as the most significant factors currently affecting valuation inaccuracy. The results of a Chi-square test did not, however, show a significant statistical relationship between respondents' profile and the perception on the comparative importance of the factors identified. Except for valuers' age and inexperience valuers and valuers' educational qualification and inexperience valuers and the selection, interpretation and use of comparable evidence in property valuation exercise. Also, the three highly ranked strategies for reducing the level of inaccuracy are: developing a global mindset, use of advanced methodology and training valuers on market forecasting skills.Practical implicationsIn order for valuers to provide state-of-the-art service to the public and to remain relevant, there is a need to accurately and reliably estimate valuation figures. Hence, the strategies highlighted in this study could be considered in a bid to reduce property valuation inaccuracy in practice.Originality/valueThis study provides an updated overview of the issue of property valuation inaccuracy in the Australia valuation practice and examines the strategies to reduce it.

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“…Theories of the exchange value of land represented in terms of monetary price include comparison method, depreciated replacement cost method and many others (Davy, 2012, p. 96; Evans, 2004; Isaac & O’Leary, 2002; O’Flaherty 2005). The professional valuation literature follows (more or less) three to five principal methods of valuation (RICS, 2012; Shapiro et al, 2012, pp. 12–15).…”

Section: Plural Value Of Landmentioning

confidence: 99%

Plural Values of Land: An Empirical Investigation

Biswas

2020

Journal of Land and Rural Studies

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The political economy of our time asserts that value equates to monetary price. This tendency to equate value in terms of monetary price continues in case of the value of land. An understanding of plural values of land encourages us to look beyond monetary price. The article considers two land acquisition cases in India, as a source of empirical data to demonstrate the existence of plural value of land and limitations of monetary price–based valuation theory.

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Modern Methods of Valuation

Cited by 28 publications

References 0 publications

Property valuation methods in practice: evidence from Australia

Property valuation methods in practice: evidence from Australia

An updated survey of factors influencing property valuation accuracy in Australia

Plural Values of Land: An Empirical Investigation

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