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Paper eres2001_101:
Valuation Accuracy – A Problematic Enquiry

id eres2001_101
authors Addae-Dapaah, Kwame
year 2001
title Valuation Accuracy – A Problematic Enquiry
source 8th European Real Estate Society Conference (26-29 June 2001) Alicante, Spain
summary Criticisms from within and without the appraisal fraternity have led to a quest for “accurate” valuations. Studies that hitherto have been done on the issue have given conflicting results. While some studies (e.g. Drivers Jonas/IPD, 1988, 1990, 1992 & 1997; Brown 1985 & 1992) have found valuations to be “accurate”, others (e.g. Hager and Lord, 1985; Lizieri and Venmore-Roland, 1991) give contrary conclusions. Those who question the accuracy of valuations have used statistical methods to prove valuation error, bias, etc. Using existing criteria for measuring valuation “accuracy”, and data from Singapore, this paper replicates the finding of valuation error, bias, etc to some extent. However, it is argued both theoretically and empirically (with examples where possible) that the criteria for determining “accuracy” is highly questionable consequent on which the valuation error, bias, etc conclusion could be seriously flawed. The paper concludes that in view of the appraisal foundations, theory of value, and the nature of the property market, it may be more rewarding to concentrate on ways and means of reducing valuation variation. It is cautioned, however, that the resulting reduction may be very moderate.
series ERES:conference
content file.pdf (58,887 bytes)
discussion No discussions. Post discussion ...
session Valuation III - Technics
last changed 2009/07/10 18:07
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