The Estate Surveyors and Valuers and the Magic Number: A Point Estimate or a Range of Value?

Aluko, Bioye Tajudeen; Ajayl, C. A.; Amidu, Abdul‐Rasheed

doi:10.3846/1648715x.2004.9637514

Cited by 8 publications

(11 citation statements)

References 11 publications

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“…The valuation outcomes (opinion of value) help property owners which may be corporate, institutional, or financial entities, as well as individuals to make decisions on a property including inheritance, asset sharing, asset allocation, property performance measurement, privatization and commercialization of assets, property sales and purchases as well as investment opportunities (Aluko, Ajayl, & Amidu, 2004). The complexity in valuation make valuers easily exposed to outside influences.…”

Section: Introductionmentioning

confidence: 99%

Valuer's Behavioural Uncertainties in Property Valuation Decision Making

Mohammad

Ali

Jasimin

2018

PMJ

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Valuation is often said "an art and science". However, it is well known that valuation is more of an "art" than a “science” in which no two valuers could perhaps arrived at the same value. The disparities in the valuation variance pose a point of concern. This research attempts to identify the behavioural uncertainties during valuation decision making process. The finding reveals that there are six (6) elements of valuer's behavioural uncertainties, which include heuristic and bias, ethical conduct, client influence, valuer's experience and knowledge, availability and accuracy of market data, as well as negligence and professionalism.

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Section: Introductionmentioning

confidence: 99%

Valuer's Behavioural Uncertainties in Property Valuation Decision Making

Mohammad

Ali

Jasimin

2018

PMJ

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“…These studies cover a number of issues, such as valuation accuracy (Aliyu, et al, 2018), uncertainty in valuation (French & Gabrielli, 2004;Kucharska-Stasiak, 2013), information asymmetry (Garmaise & Moskowitz, 2004;Firoozi,et al, 2006), valuation variances (Munshifwa, et al, 2016) and others. Thus, the reality is that, in practice, modifications are made to this basic model by practitioners as dictated by the type of property being valued, differences in the volume of market information available, technological advancements, increased client awareness, demands for more accuracy in the assessed values and generally changed dynamics in real estate markets (Addae-Dapaah & Ho, 1996;Aluko, et al, 2004;Appraisal Foundation, 2014;Bogin & Shui, 2020). The Appraisal Foundation (2014) also shows that sales comparison is the underpinning approach in AVMs, through the direct market model or comparable sales models.…”

Section: Literature Review: Application Of Sales Comparison Methods In Real Estate Marketsmentioning

confidence: 99%

“…In such settings, the main adjustment technique available to valuers is what Whipple (2013) calls "review and intuition". Makurira and Juru (2019) thus advocated for the establishment of a central database to overcome data challenges An additional reason behind the impreciseness in valuation outcomes is the imperfection of the market itself (Aluko, et al, 2004). This makes uncertainty endemic in valuation assignments (Bywater,2011;IVSC 2013).…”

Section: Literature Review: Application Of Sales Comparison Methods In Real Estate Marketsmentioning

confidence: 99%

An Investigation Into the Use of “Hybrid” Adjustment Techniques in the Application of the Sales Comparison Method in Residential Valuation

Munshifwa

2021

Real Estate Management and Valuation

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The sales comparison is the most common and universally accepted method in valuation. Although the theoretical entry point of the method is the same across most continents, its application in practice is varied and often determined by local circumstances. This often necessitates the modification of the method. For instance, while Zambian valuation practice uses this method in residential valuation, its application goes beyond the basic valuation model, incorporating a less known technique called the “reduced floor area (RFA)” technique. The RFA technique is a form of relative importance (weight) concept which assesses ancillary buildings on site relative to the main use; for residential properties this is the main house on site. Despite its obscurity in valuation literature, practitioners find its use acceptable within the dictates of local circumstances. Nonetheless, the lack of documentation means knowledge on the technique is transmitted verbally from senior valuers to graduates, and its application is not consistent across the profession, contributing to variances in the assessed values. This necessitates detailed scrutiny of the technique. Data for the study was collected from the Valuation Surveyors Registration Board (VSRB), a statutory body responsible for licensing valuers and regulating valuation practice. This is the first time the RFA technique is being discussed in a scholarly article.

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“…However, a growing perception amongst, business occupiers is that valuations do not provide the right information to business oc-cupiers. This has arisen partly because business occupiers do not recognize valuers in a strategic role; they see valuers providing a single valuation service, estimation of market value for purchase/sale decisions and corporate disclosure (Calborne, 1995;Wyatt, 2001;Aluko, Ajayi and Amidu, 2004). It is also stated that valuations are asset-specific but increasingly the demand from business occupiers is for strategic property advice.…”

Section: Introductionmentioning

confidence: 99%

Corporate Business Valuation for Mergers and Acquisitions

Aluko

Amidu

2005

International Journal of Strategic Property Management

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Business combinations including mergers and acquisitions are important features of corporate structural changes. The Investments Securities Acts (ISA), 1999 charge the Securities and Exchange Commission with the responsibility to review and approve all business combinations in Nigeria. And, real property is an integral factor in many of such strategic business decisions and, need to be set in a business context. This paper, therefore, examines how corporate business entities are and could be valued for mergers and acquisitions through exploratory research. It also explains the relevance of goodwill, marriage value, and fair value concept in corporate business asset valuation. The paper found out inter‐ alia that the value of holding property to the business needs to be measured against the return that the equity could achieve both within the business and elsewhere. It also, prima facie, shows that the role of the valuer is not one of accountant but interpreter of financial and physical information with a clear understanding of the nature of the business under consideration in merger and acquisition.

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The Estate Surveyors and Valuers and the Magic Number: A Point Estimate or a Range of Value?

Cited by 8 publications

References 11 publications

Valuer's Behavioural Uncertainties in Property Valuation Decision Making

Valuer's Behavioural Uncertainties in Property Valuation Decision Making

An Investigation Into the Use of “Hybrid” Adjustment Techniques in the Application of the Sales Comparison Method in Residential Valuation

Corporate Business Valuation for Mergers and Acquisitions

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