DESIGN AND IMPLEMENTATION OF ESTATE VALUATION MODELLING SYSTEM
A well-managed estate valuation model would bring
about an effective reliable, efficient and accurate valuation mechanism. It
also helps restore the confidentiality of property owners. This research with
particular reference to estate valuation in the context of Akwa Ibom State
Property and Investment Company aims at identifying how various classes of
properties are valued, thus, developing a computerised model that will eliminate
the problems that faced in the valuation
process. It also seeks to proffer solutions to the manual method used by the
establishment in valuating properties with the aid of computers thereby
reducing operational bottleneck. Based on this note we decided to develop an
Estate Valuation Modelling system, knowing that this will virtualy eliminate
myriads of problems associated with the existing manual system of operation in
the establishment. The programming language used in the development of this
system is JAVA 8.0
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
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
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
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
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
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.
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.
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.
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.
Organisation of research
This research work is organised into five chapters
with each chapter having it own distinct function; each chapter is sub divided
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.
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
Definition of terms
The definitions here are contextual and adopted for the purpose of this
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
Perpetuity: A disposition of property which attempts to make
it inalienable beyond certain limit fixed.
DiscountrateorCapitalisation: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.