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.
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.
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).
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.
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.
Amidu, A. and Tajudeen Aluko, B. (2007), "Client influence in residential property valuations: an empirical study", Property Management, Vol. 25 No. 5, pp. 447-461. https://doi.org/10.1108/02637470710824720Download as .RIS
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