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Client influence on valuation: perceptual analysis of the driving factors.


by Amidu, Abdul-Rasheed^Aluko, Bioye Tajudeen

Wolverton, M. L. and Gallimore, P (1999) Client Feedback and the Role of the Appraiser. Journal of Real Estate Research, 18(7), p. 415-432.

Worzala, E. M., Lenk, M. M. and Kinnard, W. N. (1998) How Client Pressure Affects the Appraisal of residential Property. The Appraisal Journal, 66(4), October, p. 416-427.

Young, M. S. and Graff, R. A. (1995) Real Estate is Not Normal: A Fresh Look at Real Estate returns Distributions. Journal of Real Estate Finance and Economics, 10(3), p. 225-259.

Zotzour, M. G. (1988a) The Impact of Professional Designation on Appraisal Variation in Corporate Relocation Appraisals. The Appraisal Journal, 56(4), p. 522-530.

Zotzour, M. G. (1988b) Quantifying Estimation Bias in Residential Appraisal. Journal of Real Estate Research, 3(3), p. 1-11.

SANTRAUKA KLIENTU ITAKA VERTINIMUI: PAGRINDINIU VEIKSNIU SUVOKIMO ANALIZE Abdul - Rasheed AMIDU, Bioye Tajudeen ALUKO

Neseniai atlikti nekilnojamojo turto vertinimo saliskumo elgsenos tyrimai rodo, kad kliento jtaka - svarbus tokio saliskumo saltinis. Todel siame darbe svarstomas klientu itakos vertinimo saliskumui teorinis potencialas ir empiriskai analizuojami veiksniai, lemiantys kliento itakos nekilnojamojo turto vertintojams masta. Rengiant si darba, buvo apklausti respondentai - atsitiktine tvarka parinkti nekilnojamojo turto vertintojai is Lagoso miesto. A pskaiciuojant vidurki, apklausos metu balais ivertinti trys veiksniai yra svarbiausi, kuriems klientas gali daryti itaka - tai vertintojo arba vertinimo firmos saziningumas, vertinimo rezultatu svarba klientui ir kliento dydis. Taciau chi kvadrato testo rezultatai neparode jokio statistinio rysio tarp imones dydzio, turto vertintoju patirties bei issilavinimo ir to, kaip jie supranta nustatytuju klientu itakos veiksniu lyginamaja svarba.

Abdul-Rasheed AMIDU (1) and Bioye Tajudeen ALUKO (2)

(1) Department of Estate Management, Obafemi Awolowo University, Ile-Ife, Nigeria E-mail: amidrasheed@yahoo.co.uk

(2) Department of Estate Management, Obafemi Awolowo University, Ile-Ife, Nigeria E-mail: btaluko@oauife.edu.ng

Received 14 June 2006; accepted 28 February 2007 Table 1. Firms' area of professional practice Professional practice Yes (%) No (%) Property valuation 77(87.5) 11(12.5) Estate agency 81(92.0) 7(8.0) Property development 53(60.2) 35(39.8) Property management 78(88.6) 10(11.4) General real estate services 70(79.5) 18(20.5) Table 2. Year of establishment of firm Year Frequency Percent Cumulative percent Between 1-5 years 15 17.0 17.0 Between 6-10 years 19 21.6 38.6 Between 11-15 years 21 23.9 62.5 Between 16-20 years 4 4.5 67.0 Above 20 years 29 33.0 100 Total 88 100 Table 3. Characteristics of the respondents estate surveyors and valuers Variable Frequency Percent Academic qualification Higher national diploma 32 36.4 Bachelor degree 49 55.7 Master degree 7 8.0 Professional qualification ANIVS 87 98.8 FNIVS 1 1.1 Year of valuation experience Between 1-5 years 47 53.4 Between 6-10 years 27 30.7 Between 11-15 years 10 11.4 Between 16-20 years 2 2.3 Above 20 years 2 2.3 Table 4. Estate surveyors and valuers assessments of clients' influencing factors Clients' influencing factors Strongly agree Agree Characteristics of valuer/valuation firm Estate surveyors and valuers sometimes 56 28 compromise their professional integrity (63.6) (31.8) by providing valuations to reflect client request Estate surveyors and valuers or firms 11 47 earning a large proportion of its revenue (12.5) (53.4) from a particular client are always tempted to please the client and thus succumb to client influence Estate surveyors and valuers or firms 4 49 undertaken more than one task for a (4.5) (55.7) client are always willing to acquiesces with that client to produce unrealistic valuation figure Estate surveyors and valuers' prior 10 37 involvement with a property affects (11.4) (42.0) their subsequent valuation decision on the property Estate surveyors and valuers are more 16 38 likely to resist client influence if the (18.2) (43.2) size of the their firms is large as opposed to small firms Estate surveyors and valuers involvement 12 41 in other consultancy work for a client (13.6) (46.6) is likely to influence valuation judgement in respect of that client Estate surveyors and valuers's style of 12 31 decision--making sometime provide (13.6) (35.2) opportunity for client to influence valuation figure Characteristics of the client Certain categories of client like lenders 9 40 are more likely to apply pressure to (10.2) (45.5) influence estate surveyors and valuers than others Big clients are more likely to influence 12 42 estate surveyors and valuers than small (13.6) (47.7) clients Clients are more likely to influence 21 40 estate surveyors and valuers if the (23.9) (45.5) valuation outcome has the tendency of affecting subsequent transactions like mortgage arrangement Clients in good financial condition are 9 36 more likely to obtain their preferred (10.2) (40.9) outcome than clients in poor financial condition Clients' influencing factors Neutral Disagree Characteristics of valuer/valuation firm Estate surveyors and valuers sometimes 3 -- compromise their professional integrity (3.4) by providing valuations to reflect client request Estate surveyors and valuers or firms 10 16 earning a large proportion of its revenue (11.4) (18.2) from a particular client are always tempted to please the client and thus succumb to client influence Estate surveyors and valuers or firms 18 13 undertaken more than one task for a (20.5) (14.80 client are always willing to acquiesces with that client to produce unrealistic valuation figure Estate surveyors and valuers' prior 28 9 involvement with a property affects (31.8) (10.2) their subsequent valuation decision on the property Estate surveyors and valuers are more 14 17 likely to resist client influence if the (15.9) (19.3) size of the their firms is large as opposed to small firms Estate surveyors and valuers involvement 16 15 in other consultancy work for a client (18.2) (17.0) is likely to influence valuation judgement in respect of that client Estate surveyors and valuers's style of 25 15 decision--making sometime provide (28.4) (17.0) opportunity for client to influence valuation figure Characteristics of the client Certain categories of client like lenders 26 9 are more likely to apply pressure to (19.5) (10.2) influence estate surveyors and valuers than others Big clients are more likely to influence 21 11 estate surveyors and valuers than small (23.9) (12.5) clients Clients are more likely to influence 14 10 estate surveyors and valuers if the (15.9) (11.4) valuation outcome has the tendency of affecting subsequent transactions like mortgage arrangement Clients in good financial condition are 22 14 more likely to obtain their preferred (25.0) (15.9) outcome than clients in poor financial condition Clients' influencing factors Strongly Mean


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COPYRIGHT 2007 Vilnius Gediminas Technical University Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.


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