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Examining Heuristics for Building - Work-in-Progress Valuations in Niger State Nigeria

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  • Babatunde Isaiah Olajide

    (Department of Estate Management, Federal University of Technology, MinnaNigeria)

Abstract

Where an investment decision on building work-in-progress (BWIP) is premised on the judgment of value, the technique of assessment must be accurate. The heuristic technique has not been able to achieve this goal. Frequent transactions in BWIP in Niger State necessitate the search for an alternative technique.This paper therefore aims to:– identify and analyze the purposes of BWIP valuations in Niger State, Nigeria,– examine the suitability of using heuristics in determining the cost of building work-in-progress, and– investigate the veracity of the use of the Nigerian Building and Road Research Institute (NBRRI)’s template of elemental percentage rates for the cost of incomplete buildings in the state.Data were obtained from estate surveyors and valuers (ESVs), registered quantity surveyors in the state, the Niger State Housing Corporation and the NBRRI. The analysis showed, among others, that heuristics, although not suitable, was the most prominent technique adopted by the ESVs for costing BWIP. Similarly, the use of NBRRI’s template for costing BWIP for residential bungalows in Minna - the Niger state capital - was validated.

Suggested Citation

  • Babatunde Isaiah Olajide, 2018. "Examining Heuristics for Building - Work-in-Progress Valuations in Niger State Nigeria," Real Estate Management and Valuation, Sciendo, vol. 26(2), pages 92-103, June.
    • Handle: RePEc:vrs:remava:v:26:y:2018:i:2:p:92-103:n:9
    DOI: 10.2478/remav-2018-0019
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    References listed on IDEAS

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    1. Olusegun Ogunba, 2011. "Valuers' perceptions of depreciation models in DRC valuations," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 29(2), pages 190-209, March.
    2. Georgia Warren‐Myers, 2012. "The value of sustainability in real estate: a review from a valuation perspective," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 30(2), pages 115-144, March.
    3. Georgia Warren-Myers, 2016. "Sustainability evolution in the Australian property market," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 34(6), pages 578-601, September.
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    More about this item

    Keywords

    building; elemental cost; heuristics; valuation; work-in-progress;
    All these keywords.

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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