Abstract
The question about accuracy and consistency in valuation practice has been subject of interest to the academicians, professionals and users of valuations not only in Nigeria or developing countries alone but also in the developed countries of the world such as UK, US
A, Canada and Australia. Property valuation is the core of Estate Surveying and Valuation profession. Thus its accuracy and/or reliability is critical to the valuers, their clients and the stakeholders of valuation in general. Earlier studies have confirmed the existence of inaccuracy and inconsistency of valuations in these countries including Nigeria. Howe ver, there has not been much study into the
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Introduction
Valuers and the valuation process have recently been the focus of debate and controversy in many areas of the world including Nigeria. This study concentrates on one part of the debate, investigation of the causes of valuation variance and inaccuracy.
Much of the country’s wealth lies in real estate property. Thus the Estate Surveyors and Valuers who are saddled with the responsibility of contributing their professional expertise to effective and e fficiently utilizing this scarce www.ccsenet.org/ibr International Busine ss Research Vol. 5, No. 3; March 2012
ISSN 1913-9004 E-ISSN 1913-9012
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and vital resources (Udoetuk, 2009). Property valuation is the core of Estate Surveying and Valuation profession.
Property valuation performs an essential role in property transactions. It provides advice on prospective purchases and sales in addition to supplying material information to underpin property lending decisions. Moreover, since early 1960s, property valuations have been used to proxy the exchange price of property investments for performance measurement purposes.
Valuation has been described as the “estimate or predictio n of the most likely selling price” according to Baum and
Crosby (1988). Implicit in the definition is
Valuations depend on forecasts. The reliability of the forecasts will then depend heavily on complete analysis of the industry, in addition to the evolving changes in the economy. It also requires understanding of the business and financial characteristic of the industry.
To achieve a good volumetric technique, the experimenter needs to be able to correctly complete certain procedures.
Several internal factors can influence the valuation of a company, however, in the subsequent are some factors that will assist management in protecting its shareholders. The first reason is the desire to generate profits for the company, as a profitable firm will attract investors. Secondly, the need to improve the management of a company can lead to valuation as the information can be used to spur growth. Valuation will assist in understanding some of the factors affecting the value of the company such as client relationships, financials, image, technology employees, and marketing. Proper management is implemented after identifying the issues affecting the organization’s value. Thirdly, communicating to the public accurate and current information is essential in attracting investors and maintaining transparency, which builds the company image.
By the 1960s many of these urban areas, with the loss of capital, jobs, and so on; began to deteriorate, and property values fell. Currently with the higher costs of property in the suburbs and other communities, there are fewer and fewer opportunities to invest small and gain a big profit; thus, making the once "undesirable" urban properties with their low property values and costs, more "desirable."
In order to meet the study objectives, in addition to the case study, a semi-structured interview was conducted using non-random sampling. As respondents of the interview had to have particular characteristics such as ability to value property and knowledge about the property market, estate agents were contacted. A total of 7 interviews were conducted with estate agents in the West Hampstead/Kilburn area. The interviews lasted approximately 10 minutes. The participants were as follows:
It is important to know the proper technique and method of valuing a company because different people may have different ways of assessing the value; it is also important in understanding the bank’s method of appraising and valuing a company or business
Whether you are getting ready to purchase your first home, move to your next home or buy an investment property it is crucial that you get informed on the latest factors that guide and regulate your purchase.
A property survey must be conducted to create a legal property description. The legal description assists with identifying boundary lines through a legal method that can properly described, “conveyed, encumbered and contracted” (Jacobus 54). The Statute of Frauds requires written description of the land in the instrument of conveyance. As the textbook stated, there are methods in determining the legal boundary lines, includes “metes-and-bounds, lot and block, monuments, government land survey, recorded plat and rectangular survey system” (Jacobus 55-60). These survey methods ensure a correct and legal description for the property deed. When preparing property deeds, it is wise to compare the legal description with the most recent deed to
Determining the property value of mortgaged properties should be looked at from a different angle. Do not consider interest that has been paid as part of the value. If ever, consider it only for the future value if it will be reasonable or not for appraisal. Real estate investors should only consider the value that the property has and to be flipped within a short
Correct valuation of real assets can present challenges to financial analysts. Different models can be used to arrive at the closest estimate of value and yet certain issues will always arise.
In personality, there are several models for personality judgment accuracy, including the Realistic Accuracy Model (RAM; Funder, 1995). Within this model there are four moderators for the accuracy of personality judgment. The moderators are (1) a good judge, (2) a good target, (3) good traits, and (4) good information (McDonald & Letzring, 2016). A good judge is the concept that an individual can more accurately judge other individuals on average. A good target is an individual that is easier to judge than others.
There has been a significant increase in the use of AVMs in valuing properties for taxation purposes (RCIS 2013, Adair and McGeal 1988). This is primarily due to the somewhat cumbersome nature of the traditional single parcel appraisal method adopted by valuers, which is also very cost intensive (O’Neil, 2004).
This project has been fully supervised, read and approved as having satisfied the necessary conditions for the award of Bachelor of Science Degree in Banking and Finance of the Department of Banking and Finance, University of Abuja.
The potentials of capital market in Nigeria as a catalyst to economic and industrial development cannot be over emphasized. The capital market as an internal part of a country’s financial system operates at the long end of the system to mobilize resources for long term development and growth. Basically, the capital market accelerates growth by providing ,relatively long term capital - debt and equity finance – for government and corporate sector.