The purpose of this paper is to ascertain the level of significance in variances in the capital values of residential properties resulting from the use of anchoring and adjustment heuristics by independent valuers’ based in Lagos in the year 2011 with that of the present; with a view to ascertaining if there has been significant improvement. No known paper in Nigeria has used valuation experiments to determine the variances in values. Valuation problems of ten properties were presented in an experiment to 144 valuers in the year 2011, in 6 local government areas in metropolitan Lagos; but 104 (72.2%) valued. The same valuation problems were represented in the year 2019 to 156 valuers in the same 6 local government areas in metropolitan Lagos, but 110 (70.51%) valued. Unlike other papers, this paper in performing experiments did not provide sales prices as part of the data to be used by the valuers as inputs in solving the simulated valuation problems. This is necessary to ascertain the variances in values resulting from valuers’ independent sources of data input and the significance of variances in estimates of the values. The one-sample t-test was adopted to test the hypothesis. The results from the 2019 data aligned with the earlier (2011) result showing significant differences in each of the valuer’s value with other values for each property. To minimize these variances, this longitudinal study recommends that defined sources of anchors for classified valuation problems, harmonized adjustment patterns, and minimization of adjustment ranges in practices is vital. The wider the variances in capital values, the lesser the confidence clients will have in the values advised by professionals.
Obinna Lawrence Umeh (Tue,) studied this question.