Client Perceptions of Valuation Reports in Nigeria

It is pertinent that the values of properties are accurately communicated to all stakeholders since it is an acknowledged fact that clients (and users) attach so much importance to the quality and reliability of valuation reports in meeting their intended investment objectives and decisions. Nonetheless, a number of key issues regarding the superiority and credibility of the valuation process and valuation reports have been the focus of considerable attention in recent time in Nigeria. As a result of this, the study examines clients’ perspectives on the superiority and reliability of valuation reports in Lagos State, Nigeria through the evaluation of the current valuation report standard of the study area, identification and assessment of issues and problems of valuation reporting in the study area, and assessment of range of factors in respect of clients’ views on the quality and dependability of valuation reports. With the aid of 75 numbers of self-administered questionnaires to sample the opinion of the selected Lagos State-based financial institutions – banks, savings and loan homes, insurance companies and discount houses, the survey summarily affirms that most of these clients and users have no vivid understanding of the basic requirements of a standard valuation report, and are not informed about any stipulated provisions of valuation standards and guidance notes. Moreover, the survey reveals concern on the need for significant increase in economic and market analyses in valuation reporting, i.e. greater emphasis on market position of particular projects and the need for the current demand and supply situation, and a call for considerable review of existing (and intended) valuation standards and guidance notes involving all stakeholders.