Zoekresultaten

Valuing the client or the property?

This thesis provides an examination of judgement autonomy of Dutch commercial real estate valuers in relation to client orientation. The valuation of commercial real estate such as offices or retail properties requires in-depth analysis due to its uniqueness by location, building type and usage details. Essentially, a register-valuer is qualified and instructed to assess a property value to one’s best cognitive effort and inform others of this outcome by means of a valuation report. In the Netherlands, concerns over independence risks and client-related judgement risks of valuers have been raised by regulative authorities as the Dutch Central Bank (DNB) and the Dutch Authority for the Financial Markets (AFM). A significant part of these concerns followed the 2008 financial crisis, which appeared to be at least partially driven by unreliable and incomparable valuations of Dutch commercial real estate (AFM, 2014; DNB, 2012; 2015). Among other things, these concerns led to the instigation of the Nederlands Register Vastgoed Taxateurs (NRVT) in 2015. NRVT is a new Dutch central register of valuation practitioners set up in order to improve self-regulation, quality control and compliance of valuation practitioners. Currently, the chamber for commercial real estate valuation holds about 2,000 commercial valuation registrations (NRVT, 2020). The introduction of NRVT, and other measures taken, reflect an instrumental view towards enhancing professionalism of Dutch valuers. This view is based on a systematic orientation to professional conduct in which good practice is primarily objectively determined (Van Ewijk, 2019). However, Wassink and Bakker (2016) point out that individuals make personal choices in order to deal with work complexity. Insight into and reflection on individual choices is part of what is referred to as normative aspects of professionalisation: what norms prevail in individual judgement and decision-making and why (Van Ewijk, 2019). In this regard, insight into judgement reasoning of valuation practitioners may contribute to normative levels of professional development of valuers. The need for such is expressed through community concerns over how individual judgement autonomy may become subdued due to instrumental-driven developments taking place in the sector. The combination of authoritative concerns over professional quality in the Netherlands and lack of (scientific) insight on how client influence affects judgement in valuation practice poses a problem: How may practitioners address client-related judgement bias risks and improve valuation accuracy from this viewpoint, if little is known on how such risks may occur in daily practice? The seemingly scarce scientific insights available in this regard in the Netherlands may also prevent educational programs to adequately address valuer independence and objectivity risks in relevant training programs. In order to address this knowledge gap, the present PhD research examines the following research problem: 169 Summary “How does client orientation affect professional judgement autonomy of commercial real estate valuers in the Netherlands?” The term ‘client orientation’ should be broadly interpreted and may refer to valuers’ perception, understanding and meaning given to alleged, actual or anticipated client-related aspects. Information on such client aspects is not required for the performance of valuation instructions. It should also be noted that this research examines the context of how client orientation may affect valuer judgement reasoning patterns during work practice, yet not its effect in terms of decision on final value opinion.

Research bias in judgement bias studies

Valuation judgement bias has been a research topic for several years due to its proclaimed effect on valuation accuracy. However, little is known on the emphasis of literature on judgement bias, with regard to, for instance, research methodologies, research context and robustness of research evidence. A synthesis of available research will establish consistency in the current knowledge base on valuer judgement, identify future research opportunities and support decision-making policy by educational and regulatory stakeholders how to cope with judgement bias. This article therefore, provides a systematic review of empirical research on real estate valuer judgement over the last 30 years. Based on a number of inclusion and exclusion criteria, we have systematically analysed 32 relevant papers on valuation judgement bias. Although we find some consistency in evidence, we also find the underlying research to be biased; the methodology adopted is dominated by a quantitative approach; research context is skewed by timing and origination; and research evidence seems fragmented and needs replication. In order to obtain a deeper understanding of valuation judgement processes and thus extend the current knowledge base, we advocate more use of qualitative research methods and scholars to adopt an interpretative paradigm when studying judgement behaviour.

Valuation of medieval churches; taking account of laypersons’ views

In this paper we investigate laypersons’ valuation of historic buildings, their experiences of thermal comfort in those buildings and contrast this with their views on the appropriateness of energy efficiency measures. This paper presents four case studies of medieval churches in Groningen, Netherlands. Valuation studies is used to investigate the values that are attached to historic buildings by various stakeholders. We apply the ‘heritage as a spatial vector’ approach, to position heritage in relation to developments in society and the landscape. Our theoretical contribution lies in the combination of heritage approaches and valuation studies. We conclude that for a more balanced assessment of historic buildings, laypersons’ valuations should be further integrated in heritage studies.

Nature, natural resources and valuation in the Anthropocene

Biodiversity, including entire habitats and ecosystems, is recognized to be of great social and economic value. Conserving biodiversity has therefore become a task of international NGO’s as well as grass-roots organisations. The ‘classical’ model of conservation has been characterised by creation of designated nature areas to allow biodiversity to recover from the effects of human activities. Typically, such areas prohibit entry other than through commercial ecotourism or necessary monitoring activities, but also often involve commodification nature. This classical conservation model has been criticized for limiting valuation of nature to its commercial worth and for being insensitive to local communities. Simultaneously, ‘new conservation’ approaches have emerged. Propagating openness of conservation approaches, ‘new conservation’ has counteracted the calls for strict measures of biodiversity protection as the only means of protecting biodiversity. In turn, the ’new conservation’ was criticised for being inadequate in protecting those species that are not instrumental for human welfare. The aim of this article is to inquire whether sustainable future for non-humans can be achieved based on commodification of nature and/or upon open approaches to conservation. It is argued that while economic development does not necessarily lead to greater environmental protection, strict regulation combined with economic interests can be effective. Thus, economic approaches by mainstream conservation institutions cannot be easily dismissed. However, ‘new conservation’ can also be useful in opening up alternatives, such as care-based and spiritual approaches to valuation of nature. Complementary to market-based approaches to conservation, alternative ontologies of the human development as empathic beings embedded in intimate ethical relations with non-humans are proposed. https://www.linkedin.com/in/helenkopnina/

Valuation of mediaeval churches, towards an integration of experts and laypersons views

Sustaining historical buildings does not always align with the ambition to promote sustainability in the built environment. In this paper we explore the dynamics and strategies that spring from this basic tension, by investigating the differences and similarities between expert’s valuation and peoples’ valuation of historical buildings, as well as their views on energy efficiency. Our paper highlights mediaeval churches in Groningen, which represent an important European heritage. We cooperate closely with the SOGK, a regional organization that is taking up the challenge of maintaining these churches in a region that is depopulating, secularizing and, to all that, suffering from earthquakes.

Valuation of real estate market values as an indicator