QUESTIONNAIRE PARADIGM SHIFT IN REAL ESTATE VALUATION THEORY AND PRACTICE: RESPONSE FROM NIGERIAN VALUERS.

Dear Sir/Ma From its cradle in about sixteen century, real property valuation practice has shifted on a number of fronts in response to market dynamics as it affect investors perceptions and expectations. This study investigates the response of Nigerian valuers to landmark shifts in valuation theory and practice over the years. The results of the study are expected to reveal the dynamism of the local practice and how it is keeping pace with international standards and best practices. Thank you for answering the questions diligently. All information to be used for this research only. Personal data (i)
(ii)

Name (optional): . Highest Educational Qualifications: OND{ }HND { } B.Sc. { } M.Sc. { Highest Professional Qualifications: Student Member { }Probationer { } PhD { } }

(iii)

}Associate {

}Fellow {

(iv) (v) (vi) (vii)

Name of Firm: Location of firm within Lagos: Your position in your firm: How long have you been in practice? ....................................................

Firms data (i) Name of firm:

(ii) (iii) (iv) (v) (vi)

Age of firm (years). Location of firm within Lagos: Number of branches in Nigeria: . Number of Oversea branches: Are you engage in general practice or do you specialize? General practice { } Specialize { } Yes { } No { } No { } } }

(xi)

Does your firm maintain a data bank?

(vii) Does the firm have a separate research department/ unit? Yes { (viii) Does your firm have a functional library? Yes { }

No {

(ix)

Does the firm have a distinct valuation department/unit? Yes { } No { }

(x)
(xi)

How many Estate Surveyors & Valuers are in your firm?. What are your areas of job specialization (if any)?(you can tick more than one option) Valuation (rating asset, compensation, insurance, mortgage) { Development appraisal Agency/Management Development/Project Management { { { } } } }

Others (Please specify)

(a) Firms mode of Operation (i) Sole Proprietorship (ii) Partnership Limited Liability (iv) Unlimited Liability { { { { } } } }

(iii)

(b) Average number of Valuations carried out/month in your firm

(i) 0 5 (ii) 6-10 (iii) 11-20 (iv) 20+

{ { { {

} } } }

(c) What methods do you OFTEN use to value commercial/residential property? (Please tick only one option) (i) Income capitalization (ii) Comparison (iii) Cost (iv) Income capitalization + cost (v) Comparison + cost (vi) Income capitalization + cost + comparison (vii) Discounted cash flow (viii) Others { { { { { { { { } } } } } } } }

(d) Which of these variants of the Investment Method do you OFTEN employ? (Please tick only one option) (i) (ii) (iii) (iv) (v) (vi) Terms and Reversion Hardcore/Layer Equivalent Yield Shortcut DCF- rational/real value/equated yield Full DCF Others { { { { { { } } } } } }

(e) How do you determine the yields for valuation purposes? (Please tick only one option) (i) (ii) (iii) (iv) (v) Market analysis Pre-determined figures provided by the firm based on property type and location Reference to textbook recommendation Rule of thumb based on property type and location Others { { { { { } } } } }

(f) Which of the following do you OFTEN use to account for risks in valuation? (Please tick only one option) (i) Conservative estimate of parameters { } (ii) Adjusting all-risk yield to reflect risk premium { } (iii) Adopting range of values instead of single-point estimate { } (iv) Use of probability models { } (i) Rule of thumb based on property type and Location { } (ii) None { } (g) Awareness and accounting for sustainability in valuation (Please tick only one option) (i) (ii) (iii) I am aware of the current global drive for sustainability in real development? Valuation process is amenable to sustainability? I do account for sustainability features in valuations { { { } } }

(iv)

It is impossible to account for sustainability in Valuation

( h) Which of these categories of information technology do your firm employ for valuation purposes? (You may tick more than one option as appropriate) (i) (ii) (iii) (iv) (v) Word processing Excel Visual Basics Artificial Neutral Network (ANN) Other (Please specify) { { { { } } } }

(i) Which of these variant of capitalization do you OFTEN employ? (Please tick only one option) (i) Annuity (ii) Sinking-fund (iii) Straight-line (iv) Mortgage-equity (v) Direct method { { { { { } } } } }

(j) Which of these quality control measure(s) do your firm employ? (You may tick more than one option as appropriate) (i) Working in close collaboration with the agency unit (ii) Use of valuation standard manual (iii) Value property in familiar market only (iv) All valuations reviewed by principal partner (v) All valuations review at unit meeting (vi) Employ conservative figures of rent, yield etc. (vii) Combination of the above (viii) None { { { { { { { { } } } } } } } }

(k) Which of the followings would you consider the FOREMOST driver of the required changes in valuation theory and practice in Nigeria? (Please tick only one option) (i) NIESVS (ii) ESVARBON (iii) Government (iv) Individual valuation firm (v) Academic institutions (vi) Valuation end user (vii) IVSC (viii) Financial Reporting Council of Nigeria { { { { { { { { } } } } } } } }

(l) Which of these would you consider FOREMOST among changes required to reposition valuation practice in Nigeria? (Please tick only one option) (i) (ii) (iii) (vi) Larger number of registered valuers Stricter enforcement of standard & ethics Greater government intervention/ regulation Greater collaboration between academia/ practitioners/ end users { { { { } } } }

(vii) (viii) (ix) (x) (xi) (xii) (xiii) (xiv)

More sponsored research Formation of larger firms Review of academic curriculum Higher demand for admission to corporate membership Mandatory valuation standards Investment in data procurement/analysis Investment in Information technology Specialization in training and practice

{ { { { { { { {

} } } } } } } }

(m) Rate the maturity of the Nigerian Property Market in terms of the followings characteristics. (You may tick more than one option as appropriate) (i) (ii) (iii) (iv) (v) (vi) Accommodate a full range of use and investment objectives Flexible adjustment in both short &long terms { Sophisticated professionals with its associated institutions and networks Extensive information flow& research activities Openness in spatial, functional and sectoral terms Standardisation of property rights and practices { } { { { { } } } } }