ANALYSIS OF ADHERENCE TO VALUATION STANDARDS AND PROPERTY VALUE CERTIFICATION BY ESTATE SURVEYING AND VALUATION FIRMS IN LAGOS, NIGERIA

Abstract

The issue of professional valuation standards and the quality of valuation reports has been the focus of considerable attention not only in Nigeria but also internationally in recent years. The aim of this study is to investigate the level of adherence to valuation standards and property value certification by Estate Surveying and Valuation firms in Lagos, Nigeria with a view to establishing a mechanism for improving compliance level to valuation standards and property value certification in Nigeria. A mix survey approach of descriptive and inferential statistics was adopted in collecting data for this study. The study was also complemented with the content analysis approach of valuations reports retrieved from the study area which was used to adjudge extent of compliance to property value certification with prescribed valuation standards. The data gathered through a structured questionnaire and content analysis of 100 retrieved valuation reports was also used. Result of analysis shows that the level of awareness to valuation standard was 97%. It further shows that the extent of adherence was 95%, while 26% do not use any valuation standard manual. Furthermore, 45% of respondents do not include property value certification statement in their report in compliance with minimum reporting standard. The study also revealed that the relationship between the level of adherence to valuation standard and property value certification have a strong positive correlation which interprets that the two variables are positively related and move in the same direction; but at slightly different magnitude. The study recommended that the regulatory body should follow up the set standards in the Green book by enforcement and imposition of sanctions on the erring members after maximum awareness of and use of the Green book must have been created among the members.