Abstract
Following the house price collapse of the late 1980s there was considerable criticism of the valuation methods used by residential valuers. Essentially, valuers had failed to adequately assess the risk attached to residential property, which had negative consequences for the consumer. Critically, for the purpose of this research the valuation methods employed by valuers had not taken account of buyer behaviour in the valuation process, which led to inaccurate valuations. The theoretical foundation of this contention stems from previous research, which established that buyers and valuers perceive differently the relative importance of value influencing factors.Consequently, the current research begins with an extensive presentation of the literature and a full critical re-examination of this branch of knowledge. Subsequently the thesis investigates the actual valuation methods used by valuers to determine whether they account for buyer behaviour accurately. The study is undertaken on a cross-national comparative basis in the United Kingdom, Ireland and Australia and is pursued on a qualitative basis. It includes face-to-face interviews with both buyers and valuers in the three countries to investigate buyer preferences and the extent to which these impact the valuation process.
Overall, the research concludes that valuers in the three countries believe that buyer behaviour is an important part of the valuation process but it is clearly evident from the research that valuers simply do not consider buyer preferences. In particular, the behavioural inputs identified in the study concern costs-in-use and economic sustainability. However, in effect, valuers have reduced the valuation task to a confirmation of bid price and because of lender pressure, which occurs world-wide, valuers overlook the economic sustainability of the property asset, which has severe implications for housing markets and national economies that interact with these markets.
| Date of Award | May 2001 |
|---|---|
| Original language | English |
| Supervisor | David Jenkins (Supervisor) |