Sabina Źróbek

Modern Challenges Facing the Valuation Profession and Allied University Education in Poland

Abstract The paper indentifies and synthesizes the observed changes in the role of the property valuer on the property market. The authors of this paper provide a perspective on the changes in the educational programs for valuers. The main challenge for valuation professionals lies in developing a deeper understanding of market globalization and better analytical skills, with a view to assessing accurate values. The educational system at the university level should encompass programmes which will prepare valuers for providing proper advice affecting important investment decisions of real estate market participants. They stress the role of international and national organizations in re-shaping the profile of the valuer. The current critical attitude towards the valuation profession has forced the European body representing valuers, namely The European Group of Valuers’ Associations (TEGoVA) to speed up the harmonisation of the valuation practice in order to forestall more rigorous control by the EU. In response to this, all the major internationally recognised standard setting bodies, such as the above-mentioned TEGoVA and The Royal Institution of Chartered Surveyors (RICS), are considering the need to add “risk analysis” to valuation reports. Such development should significantly affect future valuation educational and training programmes which will need to present a more holistic approach to real estate as an asset class.

An Attempt To Exemplify The Economic Principles In Real Property Valuation

Abstract The economic theory argues that the value of assets, including the value of real property, is influenced by many factors which determine the behavior of operators engaged in market transactions. The knowledge of basic principles and assumptions which underpin the development of value is essential to understanding the methods and procedures of valuation. The thesis, upon which the authors of this article based their theoretical and practical considerations, is formulated as follows: “The knowledge of economic principles of valuation improves the accuracy of valuation and allows for more appropriate interpretation of its results”. Therefore, these factors should be taken into account by appraisers estimating the value of property. Over a dozen so-called key principles of valuation have been formulated in literature. Among them are the principles of anticipation, change, substitution, supply and demand, competition, balance, highest and best use, conformity, and externalities. It is assumed that the most important principle in the valuation of property is the principle of anticipation. Some of the principles are relevant to all the traditional approaches to determining value, while others apply only to selected approaches e.g., the principle of opportunity cost, which is mainly used in valuations using the income approach. The thesis is supported by research results and an analysis of practical examples.

The role of spatial planning in the investment process in Poland and Slovenia

Abstract This paper is based on the hypothesis that: “Spatial planning should regulate spatial development, taking into account the public and private interests, and enabling the development of public and private investments in construction projects. Investors may be discouraged from construction on account of too small or too excessive a number of spatial implementation conditions (land use guidelines) in particular, where an adequate professional basis has not been provided” This hypothesis has been verified by analyzing spatial planning processes in Poland and Slovenia, two countries whose centrally-planned economies (in Slovenia, this was called the socialist market economy) have been transformed into functioning market economies. The main aim of this study was to discuss the significance of spatial planning documents in the investment process and their contribution to the preservation of spatial order. Special emphasis was placed on planning documents that allow construction in areas not covered by a local zoning plan. In Poland, the relevant document is the outline planning permission for development of land or property. Investors are required to prepare extensive source documents that are used by the (local) authorities for issuing outline permissions for the development of land and of property. Due to a lengthy procedure for obtaining outline planning permission, development is delayed and, as a consequence, investors are discouraged from building. In Slovenia, the relevant spatial plans at the local level include the municipal spatial plan, which set out the spatial implementation conditions and the detailed spatial plan. The spatial implementation conditions are the criteria and conditions for intervention as determined by the spatial planning document, in accordance with which the acquisition of building permits under regulations on construction is prepared. These can have a significant impact on the performance of the investment project. In some cases, such conditions even discourage investors from building, because they are not on an adequate professional basis. The three examples discussed in this paper show that both too general and too precise spatial implementation conditions (land use guidelines) are unfavorable for investors and validate the hypothesis.

VALUATION FOR LOAN SECURITY PURPOSES IN THE CONTEXT OF A PROPERTY MARKET CRISIS - THE CASE OF THE UNITED KINGDOM AND POLAND

Abstract Valuation for loan security purposes has been a key issue related to property valuation, financial markets and the economy in general. This paper attempts to demonstrate the main reasons for interest in this field by referring to the situation in Poland and the United Kingdom. Moreover, the conditions of valuation for loan security purposes in Europe have been outlined, as well as the new challenges that property valuers have to face. Questions regarding unified and harmonious valuation standards have been presented in relation to international, European and domestic professional standards and legal regulations. The conclusion addresses further challenges of property valuation that must be tackled urgently, because valuation results are strictly connected with the profitability and safety of investments in the property market. Furthermore, the paper emphasizes that uncertainty in the valuation process also needs to be taken into account, as the appraised properties secure loans given by institutions funding their development.

Forms and Effectiveness of the Client's Influence on the Market Value of Property - Case Study

Abstract Although real estate valuation is supposed to make the market transparent, it has been noted to be partial in many countries. Analysis of literature and results of the statistical analysis of survey responses of Polish property appraisers indicated that: Property valuers operate in an environment which exerts influence on the final result of valuation. The attempts of the client to influence the valuation process and their effectiveness do not depend on the gender and age of the property appraiser. The problem of valuation bias should be seen in the weakness of the system enforcing compliance with ethical standards, with this being an area which requires reinforcement in many countries.

SHIFTING POSITIONS ON HOPE VALUE

Abstract The aim of this article is to shed some light on the difficulty, and at the same time, the unavoidable change towards the embracing by valuers in Poland, of one of the most fundamental principles of property valuation, being “highest and best use” and “hope value”. Both are inherently linked to the interpretation of “market value”. The article offers a detailed analysis of international practice and the most important developments concerning professional standards for property valuers in Poland. The considerations presented herein focus mostly on issues arising out of the interpretation of “market value”. While the legal wording of its Polish definition could be considered similar to the one presented in internationally recognised valuation standards, Polish practice concerning assumptions about the use of a property at the date of valuation is very different.

Comparative Analysis of Newly-Built Housing Quality in Poland and Lithuania

Abstract The Presented research aims to analyze the Lithuanian and Polish housing markets in terms of the quality of life in new residential buildings. The article presents the concept of customer satisfaction in construction and criteria that define the quality of dwellings; the benefits, consequences, merits and demerits of the assessment of customer satisfaction are also named. A survey of customer satisfaction helps to evaluate the quality of dwellings according to their technical and functional parameters, as well as the degree of cooperation between customers and developers/contractors. The customer satisfaction index (CSI) was calculated for both countries. The results are useful for developers, contractors, facility management companies and building users.

Using Kernel density estimation for modelling and simulating transaction location

Simulation modelling performs a prognostic function through model research and the shaping of the future. Thorough insight into the analysed system and exploring its characteristics for the selection of optimal tools of analysis is an extremely significant process that precedes the stage of the simulation itself. For modelling and transaction simulation, the problem concerning the optimal range of the kernel function used for exploring the spatial activity of a property market should be addressed first. A probability function is the basis for the subsequent phase of research, which allows one to answer the question of whether the transaction density in a given year can be reflected in the transactions of the following year and subsequent years, and whether transaction distribution is correlated, in any way, with the transaction density in the previous year. The final results of the work are maps of the dynamics of transactions on the market and of the simulated transaction density.

Overview of Socio-economic Transformations Based on Residential Architecture in a Suburban Area – Case Study of Villages in the Polish Region of Warmia

Poland has a turbulent and rich history. Partitions, wars, a centrally planned economy of the socialist era and the rapid transition to a market economy left visible marks on the Polish landscape. The changes that took place in the 20th century and the early 21st century have vastly influenced the countrys architecture. Residential buildings in rural suburbs bear witness to turbulent historical events and change processes. This study analyzed residential buildings in two villages situated in the historical district of Warmia (north-eastern Poland) which is now a part of the Region of Warmia and Mazury. The results of the observations were used to review the social, economic, legal and planning factors that influenced residential architecture between 1900 and 2017. The traditional layout of Warmian villages is well preserved in the analyzed locations where pre-war architectural design mingles with buildings erected in the socialist era when construction materials were scarce. Many buildings in the surveyed villages are reminiscent of collective farms, the prescribed architectural style of the 1970s as well as the stylistic diversity of the early transformation period when customized building plans and construction materials became available. The local landscape also features buildings erected in successive decades which brought a significant increase in the price of land and maintenance costs.

Selected Aspects of Real Estate Appraisers' Professional Training on the background of Economic Theory

Th is study is aimed at presenting the role of economic principles in the real estate valuation process raised in appraisal theory. Th e formulated theses suggest that the reasons for not appreciating economic issues in the appraisal process should be sought in the education system of persons authorised to perform real estate appraisals. In order to research how economy theory was adapted by appraisal theory and practice, several commonly available information sources were reviewed. Th e table shows the kinds of principles, in the order mentioned by the authors of studies. Some information about education system of property valuers in Poland and Lithuania was discussed. In order to verify how the appraisal principles described herein are used in practice, a survey was conducted among Polish appraisers. Th e Polish respondents’ answers confi rm the diagnosis of the article’s authors as to the necessity to devote more time to these issues when preparing candidates for the profession of property appraiser.