‘Variance in estate valuing is worrisome’

He gave this observation at the Nigerian Institution of Estate Surveyors and Valuers (NIESV) 21st John Wood Ekpenyong Memorial Lecture and Fellows Induction held Thursday in Abuja. In his lecture entitled, “International Valuation Standards and   the Estate Surveyor and Valuer”  Odudu  said that there is still inconsistencies and lack of uniformity in the bases, methods […]

He gave this observation at the Nigerian Institution of Estate Surveyors and Valuers (NIESV) 21st John Wood Ekpenyong Memorial Lecture and Fellows Induction held Thursday in Abuja.
In his lecture entitled, “International Valuation Standards and   the Estate Surveyor and Valuer”  Odudu  said that there is still inconsistencies and lack of uniformity in the bases, methods and reporting standards amongst  estate surveyors in the country.
“This is evidenced in the use of dissimilar bases and methods of valuation as well as dissimilar reporting styles for the same valuation assignment. For example, bank managers have noted widely divergent mortgage values for the same property carried out by different estate surveying firms. This was partly due to the use of “Open Market Value” bases by some of the firms and the use of the “Depreciated Replacement Cost” bases by other firms.   The second source of problem has to do with the lack of uniformity in the presentation of reports, despite the Institution Guidance Notes. The third source of concern is that there is apparently a carefree attitude in respect of the supervision of and implementation of the use of International Valuation Standards by the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON),” said Odudu.
Odudu  who was the 11th  President of in the Institute, noted  that there are currently no enforcement mechanisms put in place by the NIESV or ESVARBON for proper implementation and application of the International Valuation Standards (IVS), adding that the International Valuation Standards Council (IVSC) is not a regulatory body and  has no ability to sanction any entity or valuer for breach of its standards.