Sources of Anchor Data and Adjustment Amounts in the Valuation of Residential Properties (Published)
This paper ascertained how valuers generate anchor data based on past valuations experiences and how adjustments were made on the anchors to obtain capital values of residential properties. From a Total population of 260 registered firms, 164 were located. Yamane’s (1967) formula with 0.05 sampling error was adopted in determining sample size. It was found that sources of anchor and what valuers have been adjusting for varies. Additionally, generating anchor data from local experts was more common than from firms’ records; while general adjustment of anchor for differences in identified attributes has highest adoption rate (92.3%). Previous value experience of subject property is the most common of considered anchor sources. Externally generated anchor ranked higher in use than internally generated anchor; but ranked lower in terms of adjustment. Adjusting without identification of differences in attributes should be avoided to prevent misrepresentation of comparable and loss of clients’ confidence
Keywords: Adjustment, Valuation, anchor, data, residential property