Towards Ascertaining the Acceptable Margin of Error To Property Investment Valuation Stakeholders in Nigeria

Abstract

This paper investigates the allowable range of margin of error to the majority of investment valuation stakeholders in the Nigerian valuation industry. To achieve the objective of the study, the opinions  of the stakeholders (represented by Estate Surveyors and Valuers, Property Development Companies/Commercial Banks and Courts) were sought using structure questionnaires in conjunction with interview guide. The data so collected were subjected to simple statistical analysis. The results of analysis showed that while Estate Surveyors and Valuers favoured a range of ±10.8%, Courts went for a range of ±10.2% while clients represented by Property Development Companies and Commercial Banks were inclined to a range of ±11.6%. Taking into consideration the result of the analysis, the study recommends the mean consensus margin of error of 11% based on the views of the three sampled stakeholders (i.e. 1/3 of 10.8 + 10.2 + 11.6) as shown above.

Keywords: Acceptable Margin of Error, Investment Valuation, Valuation Stakeholder, Nigeria