An assessment of the relative impact of factors influencing inaccuracy in valuation

Purpose To address the phenomenon of inaccuracy in real estate valuation successfully, it is imperative to ascertain the sources and how valuers are influenced. The purpose of this paper therefore is to identify and assess both the predictive and relative importance of the factors that significantly influence inaccuracy in residential property valuations in Lagos metropolis. Design/methodology/approach Data obtained from 250 firms of Estate Surveyors and Valuers were analyzed by a combination of descriptive and inferential statistics including factor analysis, and correlation/regression analysis. Findings The study identified: valuers' knowledge and experience; valuers' approach to valuation; and individual characteristics of valuers and valuation firms, in that order, as having significant influence on valuation accuracy in the study area. Originality/value If valuers know the factors that significantly influence inaccuracy and understand how they are affected, it would be possible to reduce the incidence of inaccuracy, together with its potential grave consequences to the housing market in particular, and the economy as a whole.