Acquired Body of Knowledge: a Core Valuation Influencing Factor in Inter-valuer Variance

Abstract

Concerns over valuation accuracy and variance cannot be over-flogged, given the somewhat fluid nature of these concepts. It is however, more apt to dig into their fundamental causative factors. This paper realizes that specialist valuer or appraiser has a chain of sequential tasks anchored on his distinguishing competencies. At the heart of this is sufficient knowledge of the attributes of his subject of valuation. Twenty-two (22) Nigerian valuers based within Lagos Metropolis were made to carry out valuation assessment of selected landed and non-landed property assets and were also examined on their perception of the adequacy of their acquired Body of Knowledge (BOK) relevant to each asset category. The variation/dispersion in their valuations is revealed by the Standard Deviation of the distribution, for Landed Property, being 7.77 while that of Non-Landed Property is 32.24; By employing the 10% maximum variation rule of Glover (1985), 9% of the valuers fall outside the limit in respect of Landed Property whereas, the figure rose to 64% for Non-Landed Property assets. This is indicative of remarkably higher internal inconsistencies among respondent valuers on Non-Landed Property Assets. Multiple regression analysis of the results indicated that all the adaptive knowledge variables exert positive influence on valuer’s competence in valuation of both Landed Property and Non-Landed Property Assets. In view of these findings, there is urgent need to review and expand underlying curriculum for training prospective valuers towards aligning theory with practice and enhance their competence across property types.