Valuers : value inventors or assessors
Ayitey, Jonathan, Frank Gyamfi-Yeboah & Anthony Gambrah
Some consider valuers to be magicians inventing values of properties. Valuation is generally said to be an art rather than a sciencee. Because of the imperfection of the property market, value is always imprecise and subject to a degree of uncertainty and valuation. Not withstanding all these, it is argued in this paper that, the art of valuation is a process of an assessment and not an invention. Before a valuer comes in, there already exist a value determined by market variables and players. All that a valuer does is to gather, synthesise, analyse existing data and trends to estimate the possible market price. The traditional methods of assessing value were reviewed to substantiate the assertion that valuation is an assessment rather than an invention. A significant part of risk management within the banking sector is property valuation when it comes to lending. Value estimates are heavily relied on by clients. The accuracyy of value and comprehensiveness of valuation reports are crucial tools in investment decision making. Valuers in West Africa have a role to play in protecting their various economies from mispricing and price formations which are at high degree of variance from market indications. The thesis of this paper is, by adhering to tested and accepted techniques and underlying concepts, valuers in Ghana and the Sub-region will act as assessors rather than inventors of value.
Event: 5th FIG Regional Conference for Africa : Promoting Land Administration and Good Governance
Only personal, non-commercial use of this document is allowed.