Quality of Valuation Reports among Nigerian Valuers and Compliance with Valuation Standards

Abstract

Valuation has been the subject of scrutiny in recent times by property professionals and investors seeing the strategic relevance of valuation as surrogate for market price and tool for investment decision. The study aimed at investigating the quality of valuation reports among Nigerian valuers with a view to improving standard of valuation practice in the country. The paper adopted mixed method approach by administering questionnaires to estate surveying and valuation firms in Abuja, Lagos and Port Harcourt as the most active property markets in Nigeria. Valuation reports were retrieved from valuation firms in the study areas. The data obtained from questionnaires were analyzed using descriptive and inferential statistics; while the retrieved valuation reports were analyzed using content analysis. The study revealed that significant number of valuers do not comply with the provision of minimum reporting content of the Valuation Standards and often interchange the purpose of valuation with basis of valuation. The paper recommended among other things that the professional regulatory body should establish quality control unit to monitor the extent of compliance with valuation standards. Valuers should be trained and retrained through mandatory continuous professional development programmes by the regulatory authorities on valuation reporting.