Reducing clients’ influence in property valuation: An exploration of a blockchain-based solution

Abstract

Clients' influence remains a significant issue in the property valuation industry, particularly in emerging countries like Nigeria, where existing solutions have proven ineffective. This study, therefore, considers blockchain technology as a medium for delivering information transparency and explores the application of a blockchain-based tool for reducing clients' influence in property valuation. Specifically, this study is pioneering in proposing, developing, and testing a blockchain-based solution for reducing client influence in property valuation, suggesting a promising avenue for increasing transparency in the process. This study involves several stages. Firstly, propchain, a blockchain-based mobile application, was developed and deployed on the Hyperledger Fabric Network, a permissioned blockchain network. The efficacy of the proposed solution was qualitatively tested by a single-round focus group held with valuers, bankers, and a loan customer who used the application to simulate a property valuation exercise for a mortgage. The findings suggest that blockchain technology could be a viable tool for reducing client influence in property valuations. However, specific challenges in the Nigerian context, such as data access, information verification, and stakeholder trust, present significant obstacles. These issues highlight the need for robust institutional support systems to enhance the efficacy of blockchain solutions in this domain. This study supports Levy and Schuck's (2005) assertion that increased information transparency can reduce client influence. Nevertheless, our research indicates that the successful implementation of blockchain in property valuation will require overcoming systemic barriers unique to the Nigerian environment. The implication of key findings is also discussed.