Specialized properties are classes of proprietary bud wants which fall outside the general range of residential, commercial and industrial properties.
These properties have no comparable in the noble market, they lack rental evidence and they are not easily adapted to alternative uses.
Valuation of specialized properties poses a very tedious task for the values because of its specialized nature. It needs wider experience coupled with the availability for data and involves huge & capital outlay to build up.
The challenges associated with valuation of specialized property with a case study Hope Alive Trust Hospital, Idofian, Kwara State, would aim of revealing all the task and challenges that are involved in the valuation.
Furthermore, appropriate method for the valuing such specialized property shall be employed to determine the capital value of the said property.
Finally relevant recommendation will be made in order to ensure efficiency in the valuation exercise of a such property.
1.0 BACKGROUND OF STUDY
According to Baun & Mackin define valuation as the act and science of estimating the value of interest in property.
Valuation is a science and art: Its is science because it is involves the use of scientific method and technique d it is an art because it is not science and also involves the use, its imagination to express ideal. Valuation involves attributing vale to land and landed property. It involves computation valuation van be required for many purposes. Valuation is carried for specific period so from these facts valuation can be comprehensively defined as the science and art of attributing value to land and landed property through the process of collecting data, and computing it, for specific purpose and for a particular period of time.
Valuation can be carried out for residential, commercial, agricultural, industrial and specialized properties. Therefore valuation requires expertise’s, skills and technical competence of the practitioner which make the valuation report to be a type of technical report.
As a result of these requirement, a valuer needs to process sound knowledge and undoubted skills, furthermore, substantial portions of the private, corporate and private wealth of the world consist of real estate. The very magnitude of these fundamental resources in our society creates a need for informed valuation to support decision pertaining to the use of and deposition of real estate and the right inherent in the ownership.
Specialized properties are of various categories depending on the applicable valuation techniques. Profit and account method is normally used for such properties as hotels, cinemas,, town halls, hospitals, while petrol filling station and agricultural properties have their own approaches as well. Other category of specialized property can be valued using replacement cost method.
1.1 STATEMENT OF RESEARCH PROBLEM
Valuation of specialized properties often poses a lot of problems because of its uniqueness in nature and due to the fact that they are not always sold and bought frequently in the market. Apart from these two facts, they still back mental evidence and comparable. As a result of these facts a lot of skills are required in its valuation. And also all the valuation process must be duly and thoroughly followed.
1.2 AIM AND OBJECTIVES
This project work aim at examining the challenges associated with valuation of a specialized property.
- To identify the various type of property in the study area
- To examine the structural component of property in the study area.
- To access suitable method to carryout the valuation of property in the study area.
- To access the problem associated with the valuation of the property and recommend a reasonable subjection in solution to the problem.
1.3 SIGNIFICANT OF THE STUDY
The significant of the study is to find solution to the challenges associated with valuation of specialized property.
Secondly, the recommendation will serve as solution to the problem encountered in the valuation of specialized property.
It’s also a course or research materials for other researchers who want to study on challenges associated with valuation of specialized property.
Furthermore specialized properties valuation involves a lot of challenges and posed a lot of problems for the person and who face the task of estimating its value i.e the valuer.
1.4 SCOPE OF THE STUDY
There is always a limited scope in any research work. The scope of the research is therefore based on the challenges associated with valuation of specialized property using HOPE ALIVE TRUST HOSPITAL Idofian as a point of reference.
1.5 LIMITATION OF THE STUDY
This dissertion has been subjected to a lot of clog and constraint among which are:-
- Lack of adequate fund
- Lack of adequate time for collection of data and analysis.
- Inadequate of previous work on the thesis of data and analysis.
- Lack of proper record.