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1 – 10 of over 1000
Article
Publication date: 6 February 2009

Fong Yao Chen and Shi Ming Yu

The purpose of this paper is to attempt to analyze client influence on valuation in both Taiwan and Singapore. Both countries are chosen because of the similar level of…

1185

Abstract

Purpose

The purpose of this paper is to attempt to analyze client influence on valuation in both Taiwan and Singapore. Both countries are chosen because of the similar level of economic development as well as professionalism amongst valuers. However, although both are Chinese‐dominated by population, the culture and language used are substantially different.

Design/methodology/approach

The study uses a survey questionnaire to sample valuers' response to client influence in both Taiwan and Singapore. The questionnaire is organized into five parts: social economic data, client influence situation, potential factors, influence method, and influence abilities. The survey findings were analyzed using SPSS and subjected to a number of standard procedures to check for missing values and multivariate normality. Mean difference and F‐test were used to judge whether the valuers in the two countries have significantly different views on client influence.

Findings

The results show that client influence on valuation practices does exist in both Taiwan and Singapore. This is despite the differences in the market structures, development background and modes of doing business. Furthermore, the study finds that the degree and extent of the problem are different. These differences, as reflected in the differing views and opinions on the causes and factors leading to client pressure, are largely due to the systemic differences in the two countries, particularly, in the way businesses are conducted as well as the medium of communication being used.

Originality/value

The paper contributes to the research on client influence on valuation through a comparative study of two countries with substantially different business environments and language of communication. These differences seem to have an impact on how valuers view client influence despite their similar economic, educational and professional backgrounds.

Details

Journal of Property Investment & Finance, vol. 27 no. 1
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 1 August 1995

Terry Boyd

The approaches used by valuers in assessing the market value ofinvestment property are explained with reference to a survey ofpractising valuers in Australia. The survey…

1742

Abstract

The approaches used by valuers in assessing the market value of investment property are explained with reference to a survey of practising valuers in Australia. The survey examined the profile of the valuers, their interpretation of market value in a volatile market and details of the valuation methodology used for urban investment property. Identifies the cross‐tabulations between valuation qualifications, experience and methodology. The need for greater market research and a specialist group of valuers with sound cash flow analysis skills to undertake major urban investment valuation are proposed.

Details

Journal of Property Valuation and Investment, vol. 13 no. 3
Type: Research Article
ISSN: 0960-2712

Keywords

Article
Publication date: 1 April 1986

STUART GRONOW and IAN SCOTT

Expert systems are currently being developed in many and varied professions. A major problem however is the extraction of knowledge from the required expert in order that…

Abstract

Expert systems are currently being developed in many and varied professions. A major problem however is the extraction of knowledge from the required expert in order that it can be represented within the system. This paper will summarise the problems of knowledge elicitation, outline the methods currently used to acquire expert knowledge and describe the method we have refined from these general principles as the most suitable for ‘capturing’ the expertise of a practicising residential mortgage valuer. The basis of this paper is a research project investigating the application of expert systems to the valuation of vacant possession residential properties for mortgage purposes continuing at the Polytechnic of Wales.

Details

Journal of Valuation, vol. 4 no. 4
Type: Research Article
ISSN: 0263-7480

Article
Publication date: 18 October 2022

Irene Naliaka Cheloti and Manya Mainza Mooya

This paper examines participants' opinions on whether valuation education and training in Kenya is adequate while comparing it to actual material conditions.

Abstract

Purpose

This paper examines participants' opinions on whether valuation education and training in Kenya is adequate while comparing it to actual material conditions.

Design/methodology/approach

This research is based on a survey of registered and practicing valuers in Kenya, interviews of key informants from professional bodies and the five universities offering real estate degree courses in Kenya, and a review of Kenya's real estate curricula and Institution of Surveyors of Kenya (ISK) training.

Findings

It was perceived that while valuer education and training in Kenya is satisfactory, it differs from actual material conditions as it fails to cover practical issues in valuation practice.

Originality/value

The study makes a critical contribution to the empirical literature by introducing new insights in valuation education and training in Kenya.

Details

Property Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 10 March 2022

Georgia Warren-Myers

The research investigates valuers' understanding of the value of sustainability in property and its' consideration in valuation practice in Australia. This paper explores…

Abstract

Purpose

The research investigates valuers' understanding of the value of sustainability in property and its' consideration in valuation practice in Australia. This paper explores valuers' perceptions of the relationships between sustainability and market values, sustainability and valuation variables, and the value influence of industry sustainability certification schemes. Further, this paper tracks prevalence of certified buildings in Australian commercial markets and the evolution of valuers' knowledge of sustainability certifications used in Australia.

Design/methodology/approach

This paper reports on the next rendition of a longitudinal study examining valuers’ practice in Australia. This research explores the evolution of Australian valuers' perception and knowledge of sustainability in valuation practice. The survey data has been periodically collected from practising valuers from 2007 to 2021. The survey questions investigate valuers' knowledge development, understanding, reporting and consideration of the relationship between sustainability and market value.

Findings

The results have identified the evolution of the influence of normative research on valuers' perceptions of the relationship between sustainability and value; with a clearer understanding emerging over time of where the value relationships are identified in valuation variables. Greater alignment between empirical Australian studies and valuers' perceptions of the influence of sustainability ratings on value, demonstrate the value connection for higher rated buildings under NABERS (energy rating) and Green Star. Whilst only 41% of the study's participants are including sustainability in their valuation reports, they include a higher level of commentary on building descriptions and initiatives, building ratings, and reporting of owner and tenant objectives, than in previous studies. Knowledge development relating to sustainability certification tool, NABERS was identified. This is likely linked to the introduction of mandatory disclosure legislation. This has also led to increased awareness and valuers' knowledge of the differences between the two key rating tools used in Australia.

Research limitations/implications

The research has several limitations: firstly, recruitment of valuers and the number of valuers' responses has varied over time; secondly, due to collection methods respondents have a greater likelihood of having an interest in and knowledge of sustainability creating potential for positive bias; thirdly, respondents may have responded to the survey in different years, but due to anonymity there has been no ability to track this. The results provide insights into the Australian valuation profession but may not be fully representative of the profession overall in Australia.

Practical implications

The broader agenda of net zero, climate change, mitigation and carbon requirements, whether driven by market forces or government legislation, are generating changes in property markets as investors' reconsider their positions and model the implications of carbon emissions on their bottom lines. Introductions of policy and legislation over time in the Australian context have led to changes in valuation practice and increasing consideration of energy efficiency and ratings in the valuation of assets. However, further guidance and research still is required in Australia to assist in the knowledge development of valuers, and their ability to consider the emerging effects of sustainability, net zero and other market driven objectives including legislation, and how these may affect or influence their evaluation of market evidence and thus property values.

Originality/value

The research has tracked valuers' understanding, knowledge, and consideration of sustainability and energy efficiency in valuation practice since 2007. In that time the research has found that, as the market has evolved and more rated buildings are built (or retrofitted), so too has valuers' knowledge and consideration in valuation practices evolved. Valuers are more engaged with industry rating tools such as NABERS. This suggests that the Australian mandatory disclosure policies have contributed to changes in the market, which are then interpreted by valuers and reflected in their perceptions and consideration of energy ratings in valuation practice.

Details

Journal of Property Investment & Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 25 February 2021

Georgia Warren-Myers and Lucy Cradduck

The purpose of this research is to investigate Australian property valuers' identification and consideration of physical risks to properties in valuation practice. The…

Abstract

Purpose

The purpose of this research is to investigate Australian property valuers' identification and consideration of physical risks to properties in valuation practice. The research further explores valuers' considerations of climate change-related risks.

Design/methodology/approach

The research approach comprised an online survey of Australian valuers who were members of the Australian Property Institute. The online survey included structured and unstructured questions to explore types and extent of risk investigations in valuation practice.

Findings

The analysis reflects that while valuers easily identified and engaged with physical risks, there is a lack of understanding of, and engagement with, climate change risks. This supports the need for better information sources and guidance to inform valuers of climate change risks per se, as well as the development of specific mechanisms for consideration of such risks to be included in valuation processes, practices and reports.

Research limitations/implications

The research is limited by the small sample size achieved due to the timing of the survey deployment, which occurred during the first wave of COVID-19 lockdowns in Australia. Thus, the findings are not necessarily representative of the Australian valuation profession, but they do provide indications of current approaches to risk identification in practice and the need for more guidance in relation to climate change risks.

Practical implications

This research identifies that more support, guidance, information and tools, as well as awareness-raising, are required to enable valuers to accurately identify all risks affecting a property.

Originality/value

The research provides a snapshot of current understandings of physical risk identification in valuation practice. As investors and other organisations integrate and build up their analysis of climate risks to their portfolios and organisations, this research indicates that valuers also need to be aware of changing market assessment of physical and climate risks associated with property for consideration in valuation.

Details

Journal of Property Investment & Finance, vol. 40 no. 1
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 26 September 2008

David Lorenz and Thomas Lützkendorf

The purpose of this paper is to explain the rationale for integrating sustainability issues into property valuation theory and practice and to provide initial suggestions…

13768

Abstract

Purpose

The purpose of this paper is to explain the rationale for integrating sustainability issues into property valuation theory and practice and to provide initial suggestions for valuers on how to account for sustainability issues within valuation reports.

Design/methodology/approach

The authors emphasise the key role of valuation professionals and of the valuation process itself in achieving a broader market penetration of sustainable construction. It is explained that, on the one hand, property valuation represents the major mechanism to align economic return with environmental and social performance of property assets, and thus to express and communicate the advantages and benefits of sustainable buildings. On the other hand, it is explained that gradual changes in market participants' perceptions in favour of sustainable buildings must be reflected within the property valuation and associated risk assessment process (otherwise valuers would produce misleading price estimates). The authors identify both the financial benefits and risk reduction potential of sustainable design as well as valuation input parameters that would allow these benefits to be reflected in property price estimates.

Findings

The authors show that the main reasons for immediately and rigorously integrating sustainability issues into property valuation are as follows: more sustainable patterns of behaviour are urgently necessary to sustain the viability of the Earth's ecosystems; a huge untapped market potential exists for sustainable property investment products and consulting services; sustainable buildings clearly outperform their conventional competitors in all relevant areas (i.e. environmentally, socially and financially); neglecting the benefits of sustainable design leads to distorted price estimates; and reflecting sustainability issues in property price estimates is already possible and the validity of this decision depends solely on the valuer's capability and sophistication to explain and justify his/her assumptions within the valuation report. However, it is also shown that efforts need to be undertaken to improve the description of property assets in transaction databases in order to provide the informational databases necessary to empirically underpin a valuer's decision to assign a “valuation bonus” to a sustainable building or a “valuation reduction” to an unsustainable/conventional one.

Originality/value

The paper postulates that valuation reports should be extended to include the following additional elements: a clear description of the availability of certain sustainability‐related property characteristics and attributes; a statement of the valuer's opinion about the benefits of these characteristics and attributes; and a statement of the valuer's opinion about the impact of these benefits and/or risks on property value.

Details

Journal of Property Investment & Finance, vol. 26 no. 6
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 1 August 2001

Miles Keeping

There has been much discussion in the academic and practitioner press about the valuation of contaminated land. Most of this discussion has centred upon the various…

Abstract

There has been much discussion in the academic and practitioner press about the valuation of contaminated land. Most of this discussion has centred upon the various techniques that can be used to determine an “appropriate figure” and what the effect, if any, might be of contamination “stigma”. Despite a re‐emergence in recent times of papers discussing professional liabilities in other aspects of valuation practice (particularly concerning bank loan valuations), there has been little discussion about the possibility of negligence being committed by valuers of contaminated land. The professional body which represents most professional valuers in the UK, the Royal Institution of Chartered Surveyors (RICS) has issued guidance for the benefit of its members which attempts to clarify the complexities of law and valuation methodology which exist in this area. It has been suggested that due to the complex nature of the valuation of contaminated assets, as evidenced by the quantum of papers on this matter, many practising valuers might still not be discharging the professional duty to an adequate degree. This paper seeks to determine whether this is an accurate suggestion by verifying the existence and clarity of the guidance and then investigating both whether professional practitioners are familiar with it and implement it. Existing literature and case law are referred to in order to assist these tasks and a questionnaire survey to 400 practitioners was administered. The paper concludes that levels of valuers’ competence in this area, as measured against an objective standard, is often very low and that many valuers are possibly negligent when acting for clients with an interest in a potentially or actually contaminated site. Assessment and monitoring of professional competence in this area is recommended.

Details

Journal of Property Investment & Finance, vol. 19 no. 4
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 1 July 2006

Lay Cheng Lim, Alastair Adair, Stanley McGreal and James Webb

The paper aims to contribute to the understanding of the current valuation practices and services offered across Asia, in particular the valuation techniques and…

2116

Abstract

Purpose

The paper aims to contribute to the understanding of the current valuation practices and services offered across Asia, in particular the valuation techniques and methodology used by practising valuers in Hong Kong.

Design/methodology/approach

In order to gain professional opinions and an in‐depth understanding of Hong Kong valuation service providers, the methods and concepts used, and the extent of involvement with Chinese clients and businesses, the paper reports the findings of interviews with major real estate valuation firms and a survey of individual valuers involved in the appraisal of properties in Hong Kong and China.

Findings

The results show that there are significant differences between the strategic management and the operational level across several facets of the valuation process in Hong Kong and China. The paper contributes to an understanding of behavioural influences within valuation.

Research limitations/implications

The main limitation is the restriction of the survey on Hong Kong‐based valuers. Further research will widen evidence to valuers based in mainland China.

Originality/value

This paper presents the results of original empirical research utilising data drawn from interviews and survey questionnaires. The value of the work lies in the analysis of the strategic overview of the organisation, management and operation of appraisal practice in Hong Kong.

Details

Journal of Property Investment & Finance, vol. 24 no. 4
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 17 August 2015

Chukwuma C. Nwuba, Uche S. Egwuatu and Babatunde M. Salawu

The purpose of this paper is to investigate client influence on mortgage valuation in Nigeria to establish and rank the means of influence clients employ, and the impact…

Abstract

Purpose

The purpose of this paper is to investigate client influence on mortgage valuation in Nigeria to establish and rank the means of influence clients employ, and the impact of firm characteristics on client influence.

Design/methodology/approach

A combination of cross-sectional survey and focus groups research designs was adopted. Questionnaire structured on five-point Likert format was used to collect data from a sample of valuation firms in five Nigerian cities. Descriptive statistics, χ2, and moderated hierarchical linear model were used for data analysis.

Findings

Clients’ means of influence on valuation are more of subtle approach than threat or coercion. The most prevalent means are respectively, plea for assistance, promise of continued retainership on banks’ valuer panels, and disclosing the loan amount. Client influence differs across cities; firm characteristics have no influence on client pressure.

Practical implications

The research provides basis for valuation bodies to review practice rules and standards and seek for legislation for valuer independence. It can serve as material for teaching and training in professional ethics.

Social implications

Biased valuations jeopardises credit risk mitigation process with potential for destabilising banks, finance sector, and consequences for the economy.

Originality/value

The study provides empirical evidence of the nature of client influence across several major Nigerian cities. In contrast to existing Nigerian studies that focus on single cities, the study covers several cities. It therefore provides a broad basis for problem-solving and decision-making.

Details

Property Management, vol. 33 no. 4
Type: Research Article
ISSN: 0263-7472

Keywords

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