Professionalisation of commercial valuers of real estate
Scientifically, little is known about the way in which valuers do their decision-making. How does client orientation affect professional judgement?
Valuation work mainly exists of interpretation, passing judgment, and decision-making. The valuer is therefore faced with many choices during a value assessment that affect the quality of value assessments.If we aim to stimulate the professionalism of valuers, i.e. reinforce the autonomy of valuers in view of client pressure, it is important to gain insight into the underlying dynamics of the valuation process: what explains how the valuer operates? Which patterns or interests are based thereupon? Pim Klamer’s PhD research has as main objective to unravel the valuation process and how client orientation may affect valuer’s judgement behaviour. Such insights will help to make recommendations to stimulate professionalism, for example through valuation-related education.
In light of the above-mentioned approach, the following articles are published:
1. A literature review on the phenomenon of ‘judgement bias’, being the existence of prejudices and other influences that affect how valuers judge valuation processes. Its results point to a diffuse picture of judgement bias manifestation by valuers as portrayed by a 30-year review of international studies. Klamer, P., Bakker, C., & Gruis, V. (2017). Research bias in judgement bias studies - a systematic review of valuation judgement literature. Journal of Property Research, 34(4), 285-304
2. Examination of task complexity in valuation processes through a grounded theoretical approach and in-depth interviews. Valuers interpret task complexity in a broad sense, taking into account the contextual factors such as the client and his interests. Different types of valuers know different types of task environments and, therefore, have different approach to task complexity within their jobs. The task environment (for example customer interests) can thus be of relevance during the professional judgement of valuers. Pim Klamer, Cok Bakker & Vincent Gruis (2018) 'Complexity in valuation practice: an inquiry into valuers’ perceptions of task complexity in the Dutch real estate market', Journal of Property Research', 35:3, 209-233. Klamer, P., Bakker, C., & Gruis, V. (2019). 'Complexity in valuation practice: perceptions of tax complexity in the Dutch real estate market'. Real Estate Research Quarterly (Dutch).
3. Case-oriented survey on the degree of client attachment in information verification of valuers. Client attachment is significant with valuers who have letting agent experience and/or represent an board level function within their organisation. Client attachment, therefore, may effect the neutrality of judgement of valuers. Klamer, P., Gruis, V. & Bakker, C., (2019). 'How client attachment affects information verification in commercial valuation practice', Journal of Property Investment and Finance.
4. Analysis of the ideal types of valuers through grounded theoretical approach and in-depth interviews. Valuers aim to live up to the standards of three valuation-ideal types in their work, in order to meet the interests of different stakeholders. These ideal types are the Expert, the Service Provider, and the Reporter. The struggle of balancing all roles, amidst time pressure and deadlines, may harm manifestation of the Expert role.
5. Questionnaire survey involving role orientation of Dutch commercial valuation professionals. While role orientation generally reflects a balance of all three ideals (i.e. Expert, Service Provider and Reporter), some type of valuers put significantly more emphasis on service provision and reporting than do others. Most notably, this includes valuers that hold substantial work experience, run a single service practice; or work in large corporate firms.
01 May 2016 - 30 April 2020
The research is structured as follows:
• A literature review on the phenomenon of ‘judgement bias’, being the existence of prejudices and other influences that affect how valuers judge valuation processes
• Examination of task complexity in valuation processes through a grounded theoretical approach and in-depth interviews
• Case-oriented survey on the degree of client attachment in information verification of valuers
• Qualitative analysis on ideal types of roles in valuation through grounded theoretical approach and in-depth interviews.
• Quantitative analysis on role-orientation of valuers through an online questionnaire survey
Collaboration with knowledge partners
This PhD research is being conducted in collaboration with the Academie voor Vastgoed, a subsidiary of the Nederlandse Vereniging van Makelaars en Taxateurs o.g. (NVM).
- MSc Urban and Area Development
- BSc Facility Management