Challenges of Mortgage Valuation in Port Harcourt, Nigeria

This paper examined the continuing challenges confronting Mortgage Valuation in Port Harcourt, Nigeria. Accordingly, this paper critically analyzed the nature, causes and types of challenges faced while carrying out Mortgage Valuation. It also tries to draw out solutions from theory and practice for implementation by three major stakeholders; the academia, practitioners and the regulatory institutions.Questionnaire was administered to (30) estate surveying firms randomly selected in the study area, while 27(90%) was retrieved and used for the study. Presentation and analysis of data was done using frequency tables and percentages.The findings of the study revealed that there is total neglect of valuation guidelines by valuers’ is major challenge that confronts mortgage valuation. Furthermore, the study revealed that most estate surveyors assigned for valuation inspections are not properly supervised. On the strength of the findings, the study recommends that estate surveyors and valuers’ should have updated property vending desks in their offices

HEURISTICS IN PROPERTY INVESTMENT VALUATION IN NIGERIA

The study addressed the gap in research on heuristics in valuation which has hitherto been confined to only anchoring and adjustment heuristics at the neglect of the other three major types of heuristics, namely availability, representative and positivity heuristics. The aim of this work was accordingly to investigate the nature and conduct of all four types of heuristics amongst Nigerian valuers with a view to ascertaining possible effects on valuation accuracy. The specific objectives of this research were to: examine whether valuers are influenced by availability, positivity and representative heuristics in property valuation practice in the study areas; investigate the relative level of occurrence of the four heuristics in property valuation; identify and examine factors influencing the usage of the various types of heuristics in property valuation; investigate the effect of these heuristics on valuation accuracy/consistency. To accomplish these objectives, the study undertook a cross-sectional questionnaire survey of 159 of the 270 Estate Surveying and Valuation firms in Lagos Metropolis, while 29 and 30 questionnaire were distributed to the entire Estate Surveying and Valuation Firms in Abuja and Port-Harcourt respectively. For ease of coverage, Lagos Metropolis was stratified into six zones thereafter respondents were selected randomly. Statistical tools, ranging from descriptive to inferential, were employed. These included frequency distribution tables, weighted arithmetic means, relative importance indices, regression analysis, the Student T-Test and Analysis of Variance (ANOVA). The results revealed that apart from anchoring and adjustment, valuers also make recourse to availability, representative and positivity heuristics while carrying out valuation. The relative usage of these heuristics was in this order of usage: availability (26.77%), anchoring and adjustment 18.62%), representative (15.63%), and positivity heuristics (10.41%). The factors that were found to affect the usage of these heuristics by usage of regression Analysis) included amongst others low familiarity with the areas where valuation were carried out (p values = 0.251, 0.192, 0.059, 0.192); complexity of the investment valuation model adopted (p values = 0.077, 0.119, 0.87, 0.889); and the level of assumptions made by the valuer; (p values = 0.842, 0.525, 0.044, 0.792). It was also discovered by use of Student T Test of Significance that the usage of the heuristics results in valuation inaccuracy (in the following reducing order of magnitude): representative (p value =0.009); availability (p value =0.016); anchoring and adjustment (p value = 0.055) and positivity heuristics (p values = 0.179). The study therefore recommended institutional discouragement of the usage of heuristic techniques which could be achieved through appropriate re-education of practitioners and other methods. The study has found that all four major heuristics are evident and they have negative impact on valuation accuracy therefore urgent implementation of recommendations proffered would make estate surveyors and valuers’ better and more accurate in their major area of specialization

A Search for Recency Phenomena in Nigeria Valuation Practice

Valuation as a function of the human decision making process is influenced by the available information assessed by valuers. There is a notion that people are sequential information processors with limited capacity. Such interplay of sequence of information has resulted to the recency phenomena as posited by Einhorn and model (1985). In essence, greater weight is given to evidence processed later in the sequence than to evidence processed earlier. This study adopted an empirical exploration with an approach in principle somewhat comparable to Gallimore’s (1994) and Keung (2006) in a bid to discovering the existence of recency phenomenon amongst Nigerian valuers. A stratified random sampling technique of 158 Estate Surveying firms in Lagos Metropolis; with a qualitative analysis employed coupled with a student T-Test and an F-Test of significance (ANOVA) reveals that Nigerian valuers are rather prone to the positive effect as against the recency effect discovered in earlier researches in the UK and Hong Kong respectively. The researcher thereby opines that a comprehensive data bank be instituted and managed by the supervisory bodies so as to guide against errors in Nigerian Valuation practic

Impact of HVOTLS on Residential Property Rental Values in High-Brow Lagos Metropolis

High Voltage Overhead Transmission Lines (HVOTLs) otherwise refered to as power-lines have been debated to facilitate property value diminution. This current study investigates the impact of power-lines on the rents of residential properties in high brow Lagos. Questionnaires were distributed to registered Estate Surveying firms, residents within 200m to power-lines in Surulere area of Lagos while an indepth interview of the Manager and field officers of the Akangba PHCN sub-station was conducted. On the average, a response rate of 66.5% was recorded. Findings revealed that residential property rents increased as distance from power-lines increased averagely by =N=5,000.00 and a mean value impact of =N=786 on neighbourhood rental value.The study encouraged the use of buried armour cables instead of overhead power-lines in future and the strict enforcement of ROWs within Lagos metropolis where power-lines already exist, in a bid to abate the effect of power line on property investments