The objective in valuation: a study of the influence of client feedback

Abstract

The objective in most property valuations is to estimate open market value. The definition of this means that direct feedback to valuers on their successful achievement of this objective is problematic (i.e. the hypothetical sale that the valuation simulates remains hypothetical). Valuers will therefore rely upon other signals of achievement. Client feedback is the most obvious of these. In mortgage lending valuations this feedback may cause valuers to reformulate the objective to that of 'validate pending sale price'. Such an association has been found to exist with US appraisers. In the UK, however, modification of the valuation objective in this way is found to be associated more strongly with the extent to which valuers specialize upon the valuation task.