Adoption of Automated Valuation Models- A Panacea for Enhanced Valuation Practice in Nigeria
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Date
2021
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Estate Management, Obafemi Awolowo University, Ife
Abstract
The era of globalization coupled with the introduction of information
communication technology has brought about changes in the real estate industry.
It has widened the scope of valuation practice, while sophisticated clients also
demand accurate price prediction and risk pricing. Extant studies have discussed
the lack of data repository bank, digital divide, obsolete educational and practical
knowledge as part of the challenges of valuation practice in Nigeria. However,
the use of technology is continually changing valuers’ roles from property
assessors based on localized market information to financial analysts. The
adoption of advanced valuation methods such as Automated Valuation Models
(AVM) could help in removing the problem of localized property market
knowledge, data availability and access to data. This study reviewed valuation
practice in Nigeria, challenges facing the practice in Nigeria and the use of
technology as a possible future for valuation practice. The study concluded that
although the use of AVM is not popular in Nigeria, it is pertinent to the growth
and development of valuation practice. It then recommended that all
stakeholders should encourage its adoption in data collection and analysis
coupled with a physical inspection to ensure an accurate estimate of value.
Description
Keywords
Advanced valuation methods, Automated valuation models, Information communication technology,, Property valuation,, Valuation practice