S. A. Oloyede

Effect of Principal Heuristics on Accuracy of Property Valuation in Nigeria

Valuation inaccuracy has been attributed amongst others to behavioural issues such as the usage of Anchoring and Adjustment Heuristics. There is however a dearth in the research of the other principal heuristics namely availability, representative and positivity. This research is hereby aimed at discovering the effects of these heuristics on the accuracy of property valuation. To accomplish this, the study undertook a cross-sectional questionnaire survey of 159 of the 270 Head Offices of Estate Surveying and Valuation firms in Lagos Metropolis, while 29 and 30 questionnaires were distributed to the Head Offices of 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. The respondents were required to carry out simulated valuations using each of the four types of heuristics and also with supplied current market data. The T-test at the 95 per cent confidence interval was employed to test for inaccuracy in heuristically determined values relative to the sale values (values of the ‘control’ properties). The result reveals that heuristic-determined values, particularly that of representative, are not as accurate as those derived from supplied current market data. The authors recommended more focus on research of representative heuristics while consistent usage of heuristics should be dissuaded, to prevent loss of clients’ confidence in valuation reports.

INCORPORATING OUTDOOR ADVERTISING BILLBOARD VALUATION INTO ESTATE MANAGEMENT CURRICULUM IN NIGERIAN UNIVERSITIES

A general overview of the curricula of educational institutions of higher learning in Nigeria suggests that billboard valuation is not included. This lack of billboard valuation education partly accounts for the intrusion of other professionals, who are not trained at all in property appraisal, into the valuation of billboards for outdoor advertising companies who desire valuation for different purposes. This paper seeks to advocate for the inclusion of the subject of billboard valuation in the curricula of universities offering Estate Surveying and Valuation in Nigeria so as to widen the latitude of choice of courses among the students and enhance professional specialisation in the near future. Secondary sources of data was resorted to through a review of National Universities Commission’s (NUC) and Nigerian Institution of Estate Surveyors and Valuers’ (NIESV) curricula for selected universities in Nigeria. Literature relating to billboard valuation was also explored to unveil their unique characteristics and valuation challenges that justify the clamour for inclusion of the subject in the curricula. It was discovered that despite the commonplace presence of billboards along thoroughfares in Nigeria, their intrinsic value and special features that make their valuation unique, billboard valuation is not taught in Nigerian universities. Incorporating this subject in the curricula will satisfy the interest of a new block of students in the short run, and create opportunity for specialisation, improve the quality of valuation service to stakeholders in the outdoor advertising business and provide additional source of income and employment to Estate Surveyors and Valuers in the long run.