Abstract
This research deals with the problem of the client–valuer relationship, possibly resulting in valuation biases. It aims to identify the influence of age and professional experience, along with other specific factors, on the perception and susceptibility of valuation professionals to pressure exerted by clients during the valuation process. We hypothesize that susceptibility to pressure from clients is conditioned by a number of factors, among which age and work experience are of key importance. The analysis is based on information obtained in a survey among Polish valuers who are members of professional associations. We used the linear probability and logit models. The conclusions of the analysis allow us to take a critical look at the existing institutional framework of the valuation profession in Poland. Our recommendations for revising the system may provide insights on the evolution of the profession, especially in Central and Eastern European countries where it is relatively new.
Highlights
The profession of property valuer plays a key role in many areas of economic activity, influencing the financial decisions and assets of companies, institutions, public entities, and individuals
Our findings show that the perception of pressure is influenced by the following variables: gender, age, work experience, education, territorial coverage of the valuer’s business, and client type
The part of the survey dealing with the problem of client impact on valuers included questions related to experience with client pressure, in the sense of pressure being felt by the valuer
Summary
The profession of property valuer plays a key role in many areas of economic activity, influencing the financial decisions and assets of companies, institutions, public entities, and individuals. They act as experts in a market that has been traditionally considered as inefficient [1], mainly because of the heterogeneity, indivisibility, and illiquidity of real estate, and the classic causes of market failure like information asymmetry, high information and transaction costs, and the existence of externalities and public goods [2]. In their professional practice, property valuers deal with the problem of market information transparency, the complexities of the valuation process, and an information-rich environment [9]
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