A Study on Property Valuation : Inaccuracy

Wong, Tian Hou (2023) A Study on Property Valuation : Inaccuracy. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

Text 13. RES#Wong Tian Hou#20WVR12743.pdf Restricted to Registered users only Download (654kB)

Abstract

The certified Valuer is responsible for the adjustment and assumptions make in valuation report. The Valuer plays an important role to derive a fair market value, this will highly rely on their experience, existing knowledge, and capability to utilize the heuristics of a particular market to evaluate and make judgments, consequently applying all this in valuation. However, the property valuation industries seem to deny these assumptions; studies had shown that the judgments can be distorted and involved in irrational behavior. It is a fact that valuation has the possibility for inaccuracy, variation, and bias, all of which have an impact on a Valuer's judgments. Therefore, this research aims to study the Property Valuation Inaccuracy (PVI). There are three objectives in the study for the first is to identify factors that influence Property Valuation Inaccuracy (PVI). Second, to investigate the effects of Property Valuation Inaccuracy (PVI). Third, to explore the methods to minimize Property Valuation Inaccuracy (PVI). There are 275 sets of qualified responses were received within one month from the date of distribution. Then, the descriptive approach was used to analyse the data. The study reveals that the Valuer must have strong professional skills, experience, independent judgment, and ethics to valuing the property with better accuracy.