Evaluation of Value-Determining factors in Residential Property Valuation in Akure, Nigeria

Purpose – The purpose of this research is to analyse the value-determining factors and examine how valuers consider and evaluate value determining variables in residential property valuation in Akure. Estate Surveyors and Valuers have less than a full understanding of how value-determining variables behave in contributing to the value of residential property. Therefore, the assumption that each variable operates independently of all others while simplifying valuation procedure, does not reflect the real-world complexities of the market. However, the skill of the Estate Surveyor and Valuer in appropriately interpreting the contributions of the variables as well as their inter-relationships in value determination cannot be over-emphasised.Design/methods followed/approach – The study involved a residential property and administration of questionnaires on all the 21 valuation firms in Akure. The data were analysed by descriptive statistics, factor analysis and analysis of variance.Findings – The study indicated four value-determining factors in the determination of residential property values in Akure, Nigeria to include physical, political, economic and social factors. The study further showed that there are differences in the means and evaluation of value determining variables among Estate Surveyors and Valuers in Akure among other findings.Practical Implications – The study identified relevant empirically supported factors that should be considered by Estate Surveyors and Valuers during the valuation process and also provide a ranking template for value-determining variables as a guide during valuation exercise. Originality/value of work – The study has contributed to the body of knowledge in valuation and provides a reliable and empirical reference for the Nigerian practice and research environment.