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A Search for an Acceptable Margin of Valuation Error:A Case Study of Valuers and their Clients in Nigeria

Ogunba, O.A. and Iroham, C.O. A Search for an Acceptable Margin of Valuation Error:A Case Study of Valuers and their Clients in Nigeria. Sri Lankan Journal of Estate. pp. 54-73.

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Abstract

In Search for accuracy and consistency in valuation,there has been a recurrent problem of identifying the accuracy consistency benchmark(a maximum acceptable margin of error)beyond which valuations should be considered negligent.This work is aimed at discovering such a margin of error in the Nigerian context(for stable market condition)from the view points of both valuers and the clients.The research method involved the distribution of questionnaires to 195 estate surveyors and valuers in lagos metropolis and all 25 the commercial banks in the country.The responses demonstrated that the benchmark for valuation variance in Nigeria could range between 11.1%(as suggested by valuers)It was noted that the 13.16%(as suggested by their mortgage valuation clients). It was noted that the appropriate implementation of such a margin of consistency in unstable market conditions must be cautious and flexible,taking into consideration the availability of data.

Item Type: Article
Uncontrolled Keywords: Valuation variance,Consistency,Margin off,Contemporaneous Valuations
Subjects: H Social Sciences > HD Industries. Land use. Labor
T Technology > TA Engineering (General). Civil engineering (General)
T Technology > TH Building construction
Divisions: Faculty of Engineering, Science and Mathematics > School of Civil Engineering and the Environment
Depositing User: Mr Solomon Bayoko
Date Deposited: 25 Mar 2014 21:46
Last Modified: 25 Mar 2014 21:46
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/2265

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