Risk in Property Appraisal Report: A Perception of Estate Surveyors and Valuer in Nigeria

Abstract

Risk analyses are necessary for many forms of investment; therefore, it is vital for Estate Surveyors and Valuers to link and account for these risks explicitly to clients by incorporating more detailed risk analysis techniques to the present appraisal techniques used in order to guard their clients against the effects of instability in the expected outcome of their development. Data collected amongst 90 estate firms in phase III Abuja revealed that only few Estate Surveyors and Valuers firms have carried out the feasibility and viability appraisal in Abuja metropolis in the past 20 years. Analyses of data collected were made using frequency counts, percentage tables and Mean Item Scores, based on 5 points Likert scale with spearman ranking in descending order. From the study, the result shows the significant risk provided for are political, economic, and legal risk, while sensitivity analysis was the most preferred risk analysis technique used by Estate Surveyors and Valuer, the research work also revealed that the more complex the method of analysis, the lower the usage. Monte Carlos technique is recommended to be a suitable method that Estate Surveyors and Valuers can use to report risk explicitly to clients.