AN EMPIRICAL EVALUATION OF THE FACTORS MILITATING AGAINST VALUATION ACCURACY IN NIGERIA

Property valuations perform an essential function in the real property market by serving as surrogates for transaction prices to the extent that property investment cannot operate effectively in the absence of reliable valuations. However, in Nigeria there has been persistent disparagements and concern on the capability of valuers in the country in carrying out valuations in a dependable and consistent manner. It is against the foregoing that this study examines the causes of such inaccuracies in the country using Lagos metropolis as the case study. Questionnaires were administered randomly to 200 practicing estate surveyors and valuers within selected study area out of which 120 (60%) were returned and found useful for the study. The study adopted the descriptive method of percentage and mean ranking for analyzing the data gathered. The study found that the major problems perceived to be responsible for valuation inaccuracies in Lagos metropolis to include unavailability of relevant data, ineffectiveness of the regulatory framework and lack of seriousness by regulatory bodies to implement disciplinary measures against indicted valuers as a deterrent to others; inadequate and/or inappropriate academic training; lack of adherence to Valuation Standard Manual and integrity of individual Valuers which they ranked 1st, 2nd, 3rd, 4th and 5th respectively. The result of the analysis further revealed adoption/use of outdated valuation approach, conservation of valuable information from valuers by clients, nature of property market and assumptions in Valuations which were ranked 9th, 10th, 11th and 12th respectively to be of less significant to the issue of inaccurate valuation. The study recommends the establishment of databank by the profession’s regulatory (NIESV and ESVARBON) bodies in the country towards addressing the problem of inaccurate valuation in Nigeri