A study of the acceptable margin of error for valuation accuracy in south-east, Nigeria
Udobi Alexender Nnamdi, Onyejiaka Joseph Chukwudi
Due to the believe of many valuation stakeholders that value estimated from investment method of property valuation practice in the country does not accurately predict market prices, this has lead to the various stakeholders having numerous perceptions of the level of reliability required for valuation estimates relative to selling prices. Stakeholder like; Valuers, valuation users, banks, and other financial institutions, courts and even laymen have divergent views of what constitute valuation accuracy. This study examined the perception of Estate Surveyors and Valuers in the South-East Geopolitical Zone of the country on the margin of error expected of an Estate Surveyors and Valuers in carrying out valuation assignment. To achieve the objectives of the study, questionnaire backed up with interviews were administered on the population of ninety eight (98) registered firms in Aba, Enugu, Onitsha and Owerri towns. Data collected were analyzed with the use of the relative importance indices (RII) from the analysis, the valuers acceptance of margin of variation between their valuation estimated and the sale price was 0-10%. This means that valuation estimates should closely approximate the sale price of the property.