Transparency, quality and the RICS brand in user assessment of valuation reports
Diaz, Julian Hansz, J Andres Gallimore, Paul
Transparency, quality and the RICS brand in user assessment of valuation reports
This proposed study seeks to improve our understandings of two key areas of client behaviour in relation to property valuations: first, the effect of information transparency upon clients@ susceptibility to misjudgements of valuation quality; and second, the effect of the RICS βbrandγ on clientsα judgements of valuations. These findings in both areas are of direct interest and concern both to the public (whos interests are very frequently affected by the behaviour of investor-clients) and to the RICS. The relevance of the study to the RICS is further reinforced by the international character of the study, where insights will prove useful in setting policies associated with the Institutionαs clobal expansion. Prudent property investment is dependent upon the competent input of property valuation professionals. The investing public has a right to expect quality valuations but may lack sufficient skill to make accurate judgments of valuation quality. The RICS spends considerable energies in developing and sustaining a brand that the public can reasonably rely upon as a strong cue to valuation quality. The object of this research is to gain insight into the publicαs ability to judge the quality of the valuation product and the degree to which the RICS brand is relied upon in making this judgement. Theoretical work by Newell and Simon (1972) and by Tversky and Kahneman (1974) suggests that in a subconscious attempt to gain cognitive efficiency, judges will rely upon shortcuts such as the cue that the RICS brand may provide. The growing global concern over investment fraud and the concomitant public need for standard, reliable professional brands have not left the brands have not left the property sector untouched and highlight the importance of this research. In the UK, the RICS anticipated some of the hazards in setting up the Carsberg Committee and subsequently implementing key recommendations. (one of the applicants of this proposal was a member of the team that conducted the Education Trust-funded investigations that led to the Carsberg Committee.) In the Unived States, the House of Representatives has just announced its intentions to examine the role of valuations in mortgage fraud. An understanding of the degree to which the investing public can or cannot judge the quality of the valuation product available to it and the degree to which RICS branding is or is not relied upon to make these judgments helps define both the extent to which society is vulnerable to fraud/incompetence and the extent to which the RICS is relied upon to mitigate this exposure. These issues have yet to be rigourously investigated although a growing behavioural literature addresses a variety of valuer topics. All three of the applicants for this award have contributed significantly to this literature, which most recently was summarized in the RICS Foundation publication Behavioural Research in Appraisal and Some Perspecitives on Implications for Practice (Diaz, 2002) This item is no longer available.
Transparency, quality and the RICS brand in user assessment of valuation reports
This proposed study seeks to improve our understandings of two key areas of client behaviour in relation to property valuations: first, the effect of information transparency upon clients@ susceptibility to misjudgements of valuation quality; and second, the effect of the RICS βbrandγ on clientsα judgements of valuations. These findings in both areas are of direct interest and concern both to the public (whos interests are very frequently affected by the behaviour of investor-clients) and to the RICS. The relevance of the study to the RICS is further reinforced by the international character of the study, where insights will prove useful in setting policies associated with the Institutionαs clobal expansion. Prudent property investment is dependent upon the competent input of property valuation professionals. The investing public has a right to expect quality valuations but may lack sufficient skill to make accurate judgments of valuation quality. The RICS spends considerable energies in developing and sustaining a brand that the public can reasonably rely upon as a strong cue to valuation quality. The object of this research is to gain insight into the publicαs ability to judge the quality of the valuation product and the degree to which the RICS brand is relied upon in making this judgement. Theoretical work by Newell and Simon (1972) and by Tversky and Kahneman (1974) suggests that in a subconscious attempt to gain cognitive efficiency, judges will rely upon shortcuts such as the cue that the RICS brand may provide. The growing global concern over investment fraud and the concomitant public need for standard, reliable professional brands have not left the brands have not left the property sector untouched and highlight the importance of this research. In the UK, the RICS anticipated some of the hazards in setting up the Carsberg Committee and subsequently implementing key recommendations. (one of the applicants of this proposal was a member of the team that conducted the Education Trust-funded investigations that led to the Carsberg Committee.) In the Unived States, the House of Representatives has just announced its intentions to examine the role of valuations in mortgage fraud. An understanding of the degree to which the investing public can or cannot judge the quality of the valuation product available to it and the degree to which RICS branding is or is not relied upon to make these judgments helps define both the extent to which society is vulnerable to fraud/incompetence and the extent to which the RICS is relied upon to mitigate this exposure. These issues have yet to be rigourously investigated although a growing behavioural literature addresses a variety of valuer topics. All three of the applicants for this award have contributed significantly to this literature, which most recently was summarized in the RICS Foundation publication Behavioural Research in Appraisal and Some Perspecitives on Implications for Practice (Diaz, 2002) This item is no longer available.