CHAPTER
ONE
INTRODUCTION
Estate surveying and valuation in
Nigeria dates back to the beginning of creation. At creation the first estate
was established by God in the Garden of Eden, Adam and Eve were put in charged
of it. Thus, Adam and Eve were the first estate surveyors and valuers known to
man.
However, the evolution of estates surveying
and valuation as a distinct and recognised profession brought about the ever
increasing challenge of record keeping, booking, accounting and statistical
data analyzes.
Thus, to this end, we are concerned in
developing a computerized based system that will be used in the estate
valuation practice to eliminate the challenges posed by the present manual
method used in the esteem profession.
Theoretical background
For an object to have value it must be
scared related to the demand. In other word it has to be limited in supply
related to the demand. If an object is in it ample supply and there is little
or no demand for it then in the economic sense the object has no value. For
there to be an increase in the value of an object there must be an increase in
the demand or a corresponding decrease in the supply. Thus, valuation is the
art, science and practices of determining the value of all the description of
property and of all the interest therein. The managing and developing of
estates and other business concerned with the management of landed property.
Valuation entails securing of the optimal use
of land and its associated resources to meet social and economic needs.
Determining the structure and condition of buildings and their services and
advising on their maintenance, alteration and improvement. Valuation entails determining the economic
use of land resources by means of financial appraisal for building of
industries.
The need for an effective, accurate and
efficient valuation method is what every estate firm looks for. The increasing
state of data, record generation and the implication of such are becoming more
evident as challenges are becoming elaborate with frequent technological
innovations.
Estate valuation is the process of valuing
real property. The value usually sought is the property market value. Selling
(whether by auction or otherwise) and buying or letting (as agent) of real and
personal property and that of the interest therein. Valuation is a problem
solving process in which the influence of sociological, economic, government
and physical forces are analysed in relation to the property. Having an
effective valuation calculation system is one of the major challenges facing
most of our estate valuation firms, yet most of the firms freely admit they
have difficulties handling adequately.
The recent development of course has much
emphasis to place on the computerised method of estate valuation. These can be
accomplished through some discrete skills that can be learnt by people in the
estate management profession.
In valuation, no matter how complex or simple
the question, the solution requires the interpretation in terms of money, on
the influence of economic, sociological , physical and government forces on the
specified property.
The scientific solution to valuation problems
is crystallised in an automated valuation process.
A change in these valuable tool will require a
conscious departure from the traditional practice, especially the use a
computerised method in lieu of the manual method, has valuation is the art of
estimating the value for a specific purpose of a particular interest in a
property at a particular moment time taking into account all the features of
the features of the property and also considering all the underlying economic
factors of the market, including the range of alternative investment.
It is obvious that the valuation process
should be reviewed periodically, and if expectations are significantly different
from the pervious estimates, the valuation charges for the current and the
future should be adjusted, based on the standard valuation values for the
stipulated period.
By studying and outlining the various
techniques that can be used for valuing properties and investigating the extent
to which they are used in Nigeria, investors and practitioners can gain a
better understanding and have a set goal on which based a more convincing
judgement on investment action.
With computerised method of estate valuation
in place, estate surveying and valuation firms however will onto such a system
as a channel for strengthening the contributions to be made.
However, valuation should be seen as a service
rendered by the estate valuers called the stewards or the Agents that acts on
behalf of the owners or the investors. Thus, the valuers should be men of
honour trusted in different fiduciary relationships, thereby explaining the
sobriquet attached to the profession of estate valuation.
1.2. Statement of problem
As economic of the world globalize and
capital becomes more mobile, valuation gains momentum in privatisation, joint
ventures, mergers and acquisition, restructuring to create values. The purpose
is to computerise the estate valuation methods, access the risk face by
professionals in the valuation field, estimating the market price subject to
series of assumption, with whatsoever the future occurrence will be, to
alleviates the poor practices and explore the good ones.
In the cause of this project the researcher is
not only concerned with anticipating what the future occurrence and attempting
the desirable ones more likely and the undesirable ones less likely.
1.3. Objective of the study
The main aim of this study is to
introduce to the estate valuers and other relevant organisation saddled with
valuating of properties, how valuation technique used affects property value
and seeks to established a computerise approach for Nigerians in the estate management fields including other
relevant authorities.
However, the computerise valuation modelling
system would bring about efficiency, reliability and effectiveness in the
valuation system which will replace the manual method presently used. This
proposed system would help eliminates the problems associated with the manual
method used in the establishment. This will also provide remedies,
recommendation and practical guides on how to make the process an effective
tool to determine the functionality of properties.
This study seeks to determine how properties
are valued, determine the valuation techniques used in property valuation in
Nigeria and ascertain the risk involved in the valuation process and the level
of awareness of clients regarding approaches used in valuing their properties.
1.4. Significance of the study
This research work will be of an
immense significance to organisation embodied with estate management, in that,
it is aim at developing a model, an effective, reliable computerised method of
reaching a value for valuated properties, expected to help in property
management.
It intends to advance the organisation
technology on how to computerised valuation process and show how different
valuation techniques affect properties value. This study will also help firms
to ascertain the degree of functionality of properties.
To other professional bodies and students this
research work will serve as a reference material, people in related field, who
might conduct research into related field, will find this research work useful.
The recommendation and some suggested
solutions to the problems stated would enhance the management of valuation
firms to review some aspect of valuation systems that may affect them.
1.5. Organisation of research
This research work is organised into
five chapters with each chapter having it own distinct function; each chapter
is sub divided into sections.
Chapter one deals with the general frame work
of the study giving insight into the main motivation, statement of problem as
relate to this study, the research objectives, the study expectations,
organisation of the study and definition of state.
Chapter two contains the outline of the study
and the literature review of some of the related studies carried out on
property valuation in Nigeria and other countries. This chapter intends to
fully investigate what estate valuation are, effect of the environmental
factors on property value. It also recommends ways of improving valuation
practices.
Chapter three mainly focuses on the design of
the study with the purpose of the study being analysed.
Chapter four deals mainly with the system
implementation, it contains the system flowchart, analysis of the modules and
the choice of programming language.
Chapter five provides the limitation of the
study, the summary, recommendation and the conclusion of the study.
1.6. Scope of the Study
Valuation is an embracing topic in the
determinant of the value and functionality of a property. For the purpose of this research work, the
researcher shall be limited to estate valuation in the context of Akwa Ibom
State Property and Investment Company (APIOC). Reference shall be made to
selected documents in the establishment.
1.7. Definition of terms
The definitions here are contextual
and adopted for the purpose of this study.
Valuation: Estimation of the capital
or rental value of land or buildings at a particular point in time.
Agent: One who acts for or in a place
of another (the principal) by authority from him, one entrusted with the
business of another.
Value: The price at which an asset
would trade in a competitive setting.
Appraisal: A judgement or assessment of
the value of something.
Perpetuity: A disposition of property
which attempts to make it inalienable beyond certain limit fixed.
Discount rate or Capitalisation: The
rate expressed in percentage form at which a future income flow is turned to
present value. It shows the different between
the net income of a property and
the capital value.
TOPIC: DESIGN AND IMPLEMENTATION OF ESTATE VALUATION MODELLING SYSTEM
Format: MS Word
Chapters: 1 - 5
Delivery: Email
Delivery: Email
Number of Pages: 65
Price: 3000 NGN
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