How client attachment affects information verification in commercial valuation practice
| Pages | 541-554 |
| DOI | https://doi.org/10.1108/JPIF-04-2019-0059 |
| Published date | 24 June 2019 |
| Date | 24 June 2019 |
| Author | Pim Klamer,Vincent Gruis,Cok Bakker |
| Subject Matter | Property valuation & finance,Property management & built environment |
How client attachment affects
information verification in
commercial valuation practice
Pim Klamer
HU University of Applied Sciences Utrecht, Utrecht, The Netherlands and
Utrecht University, Utrecht, The Netherlands
Vincent Gruis
Department of Management in the Built Environment,
Delft University of Technology, Delft, The Netherlands, and
Cok Bakker
Department of Philosophy and Religious Studies,
Utrecht University, Utrecht, The Netherlands
Abstract
Purpose –Information verification is an important factor in commercial valuation practice. Valuers use their
professional autonomy to decide on the level of verification required, thereby creating an opportunity for
client-related judgement bias in valuation. The purpose of this paper is to assess the manifestation of client
attachment risks in information verification.
Design/methodology/approach –A case-based questionnaire was used to retrieve data from 290
commercial valuation professionals in the Netherlands, providing a 15 per cent response rate of the Dutch
commercial valuation population. Descriptive and inferential statistics have been used to test research
hypotheses involving relations between information verification and professional features that may indicate
client attachment such as an executive job level and brokerage experience.
Findings –The results reveal that valuers acting at partner level within their organisation obtain lower
scores on information verification compared to lower-ranked valuers. Also, brokerage experience correlates
negatively to information verification of valuation professionals. Both findings have statistical significance.
Research limitations/implications –The results reflect valuers’reasoning behaviour rather than actual
behaviour. Replication of findings through experimental design will contribute to research validity.
Practical implications –Maintaining close client contact in a competitive environment is important for
business continuity yet may foster client attachment. The associated downside risks in valuation practice call
for higher awareness of (subconscious) client influence and the development of attitudinal scepticism in
valuer training programmes.
Originality/value –This paper is one of the few that explore possible sources of valuer judgement bias by
relating client-friendly valuer features to a key area of valuation i.e. information verification.
Keywords The Netherlands, Job level, Judgement bias
Paper type Research paper
1. Introduction
Professional standards require real estate valuers to produce accurate valuations sustaining
public confidence in their work. The importance of information verification skills in this is
recognised by relevant professional institutions, which require valuers to undertake
reasonable steps to judge the extent to which the information provided is likely to be reliable
(RICS, 2017; TEGoVA, 2016). However, the accuracy of valuation reports is debated due to
Journal of Property Investment &
Finance
Vol. 37 No. 6, 2019
pp. 541-554
Emerald Publishing Limited
1463-578X
DOI 10.1108/JPIF-04-2019-0059
Received 25 April 2019
Revised 16 May 2019
Accepted 17 May 2019
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1463-578X.htm
© Pim Klamer, Vincent Gruis and Cok Bakker. Published by EmeraldPublishing Limited.This article is
published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce,
distribute, translate and create derivative works of this article (for both commercial & non-commercial
purposes), subject to full attribution to the original publication and authors. The full terms of this licence
may be seen at http://creativecommons.org/licences/by/4.0/legalcode
541
Commercial
valuation
practice
To continue reading
Request your trial