Investigation of Causes of Variance in Rating Valuation: Assessors Point of View

Abstract

The focus of this study was to investigate the causes of variance in assessed rateable values from the point of view of property rating assessors. Valuation is the foundation of property rating administration. The correctness of the assessed rateable values significantly impacts other components of rating administration. The rateable value is considered to be correct when the variance in the valuations of a rating authority and objector is within an acceptable margin of variance. Purposive sampling method was adopted among registered estate surveyors and valuers in Kwara State, Nigeria. This study adopted qualitative research approach. The qualitative data were obtained from an interview survey with 8 valuers, which content analysis was employed to analyze the data. Findings showed that experience in rating valuation, valuers’ negligence, unrealistic valuation assumption and integrity of the valuers were the causes of variance in rating valuation. Other factors identified are comprehensiveness of the law, the explicitness of the law, absence of quality control, absence of a professional sanction, availability of market indices and clients’ influence. The findings could have practical usefulness on rating authority, estate surveying and valuation regulatory board and the assessor. This could avail the stakeholders of the requisite information on the root causes of variance in assessment and possible ways of correcting such variances. The correction could pave way for the role of valuation in rating administration.