Evaluation Of The Proliferation Of Non Registered Estate Surveying And Valuation Firms In The Real Estate Market In Owerri Imo State
Background to the Study
Estate surveying and valuation involves the application of specialized skill to care for the investment, often of an individual, household or corporate body in buildings with a view to ensuring a maximum return. It is directed towards a purpose. Its concern, according to Scarrett (2010) is the optimization of the owner’s investment. It is a conscious process of guiding and tailoring an investor’s investment in land into profitable ventures. According to Baldwin (1994) it is the total care of the building during the operation stage.
Whereas investment in property asset has often been described as the single largest investment of a household because of the capital requirement for its procurement, the success of such capital intensive investment is a function of its management. As against operational traditional definition of Cheng (1998) as a series of simple operations serving buildings, such as cleaning the common areas, providing security guards to mind entrances, and maintaining the common areas of building premises and services, Scarrett (1983) proffers a strategic view which seeks to control property interests having regard to the short and long-term objectives of the estate owner and particularly to the purpose for which the interest is held.
As a specialized assignment, it has been described (Sangosanya, 1986) as a business as well as a profession requiring an acquisition of knowledge and special skills in a particular field of endeavour. Good property management practice is about serving the users rather than the physical building (Li, 1997). Implied in this, according to the author, is the need to acquire basic knowledge and training that will enhance effective performance.
A fully registered Estate manager requires in-depth knowledge at land economics, accounting, architecture, building and finance. A working knowledge of landlord and tenant law, access to a competent attorney, effective communication skill, the ability to organize and delegate affectively as well as good time management skills and stress reduction techniques are also necessary to efficient property management. At the same time, Li (1997) posits that the property manager should be very sensitive to the changes in the economic environment so that contingency plans can be made for the owners in terms of cash-flow planning. This, according to the author, is not always an easy job in a mature real estate market with proper market regulation and well-developed market practice.
RICS Ref No T 069(2006) identified three (3) levels of competencies, that is, knowledge, skills and experience required of estate managers. First, he must demonstrate knowledge and understanding of property management and the relationship between owner and occupier. Second, apply the principles of property management to provide solutions to issues affecting both owners and occupiers of real estate. Third, provide evidence of reasoned advice including the preparation and presentation of reports in relation to property management.
The formal training required to fulfill the requirement of efficient property management is fully contained in the training of an estate surveyor and valuer. Its training equips him to clearly understand the owner’s needs and desires for the property. He is thus the professional and an expert in property matters. He is a member of the estate surveyors and valuers registration board of Nigeria, a body legally saddled with the responsibility of regulating the practice of estate management in Nigeria. The formal training of an estate surveyor qualifies him as the appropriate expert to handle property management.
Statement of the Research Problem
As prepared as the institution is towards excellent real estate service provision, a large proportion of the population still engage non-registered estate surveyors and valuers as agent for the management of their properties. The dailies and other media houses warn of caution as to whom to entrust with property investment. This is because of the daily report of colossal loss that many investors record from interactions and patronage of non registered estate managers and valuers which has continued to rise on daily basis. However, happenings around suggest that more people daily patronize non registered agents. This is regardless of possible loss that might arise from it. In other words, Investors are daily duped of the investment returns on the property as many of the so called agents could not account for rents collected on behalf of the landlords and since they are not traceable to any particular professional bodies, they often abscond and escape punishment.
Other effects of this act include deprivation of professionals of legitimate jobs, quackery and loss of professional image and general lack of trust on property managers by clients resulting from an experience with a non registered estate surveying and valuation firms. This study therefore seeks to investigate Evaluation of the proliferation of non registered estate surveying and valuation firms in the real estate market in owerri imo state.
Objectives of the Study
The main thrust for this study is to Evaluate the proliferation of non registered estate surveying and valuation firms in the real estate market
- What are the Reasons For The Proliferation and Involvement Of Non Registered Estate Surveyors Into Property Management Business?
- To what extend does non registered estate surveyors incursion in property management affect the performance of registered firm
- What are the main thrust for the patronage of Of Non Registered Estate Surveyors Into Property Management Business?
Significance of the Study
This is necessary because it will instill confidence in the ever increasing clients searching for genuine information about the real estate market trends over time and in the near future.
It will also serve as body of literature and knowledge to students and researchers who may which to embark on similar study in the future.
Scope of Study
No matter how ambitious a researcher could be, no single study can be all encompassing. Hence, this study limits have to be defined clearly. The study therefore focused on Evaluation of the proliferation of non registered estate surveying and valuation firms in the real estate market with a special attention to Owerri Imo state.
Limitations of Study
In the course of the study the under-listed constraints were encountered. These constraints included:
- Limited human, material and financial resources at the disposal of the researcher which imposed restrictions on study coverage.
- The technical nature of some of the questions that were put across to respondents which necessitated the researcher resorting into the use of personal interviews for some respondents thus taking a toll on the time of the researcher
- The study of a few selected towns and cities can not be completely typical of all towns and cities in a country as big as Nigeria. However, since majority of estate surveyors and valuers in Nigeria aggregate and concentrate in the study area, the findings of the study is believed to be applicable to majority of valuers in the country.
The constraints however did not significantly affect the results of the study because necessary precautions were put in place to consult experienced professionals who had practiced across varying economic spheres before and after Nigeria got her independence. For this reason, the findings, observations and recommendations that emanated from the study could be tested across the major cities within the country and found useful.
Definition of Key Terms
In a study of this nature, it is considered necessary and desirable to define key terms with a view to clarifying both operational and constructive definitions to avoid ambiguity. Constructive definition involves substituting the concept or construct of the term we are defining with other concepts or constructs, the operational definition requires that the concept or construct be assigned a type of meaning which the researcher wants to carry throughout the study.
This is the process of estimating the market value, insurance value, investment value or some other properly defined value of an identified interest or interests in a specific parcel(s) of real estate as at a given date. It is the estimate of the most likely selling price, the assessment of which is the most common objective of the valuer. The most likely selling price is commonly termed “open market” or “market price”. Baum and Crosby (1988) distinguish between two types of valuation: price prediction to the market or to an individual. Valuation in this thesis is taken to be the prediction of most likely sale prices in the market rather than to the individual.
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