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Ranking the Causative Factors of Mortgage Valuation Inaccuracy in Kaduna Metroplois

Author

Listed:
  • Aliyu Bilkisu Adamu

    (Department of Real Estate and Valuation, Nuhu Bamalli Polytechnic,Zaria, Nigeria)

  • Sani Habibu

    (Department of Real Estate and Valuation, Kaduna Polytechnic,Kaduna State, Nigeria)

  • Usman Hamza

    (Department of Real Estate and Valuation, Abubakar Tafawa BalewaBauchi, Nigeria)

  • Muhammad Hassan

    (Department of Real Estate and Valuation, NuhuBamalliPolytechnic,Zaria, Nigeria)

Abstract

This paper is aimed at contributing to the scarce empirical literature on mortgage valuation by ranking the factors that influences mortgage valuation inaccuracy in the Kaduna Residential property market. A quantitative research approach using a survey design was adopted and structured closedended questionnaires were designed and administered to 57 registered Estate Surveying and Valuation (ESV) firms in Kaduna metropolis; 51 out of the 57 administered questionnaires were returned and used for analysis. A simple random sampling technique was employed and the 5-point Likert scale used as the scale of measurement, while causative factors were ranked using the Relative Importance Index (RII). The study analyzed the data using percentages. Findings indicated that data inadequacy, imperfection in the property market and clients’ pressure are the most trending in the absence of a unified valuation approach. The regulatory framework and valuation methodology are least contributory to valuation inaccuracy in the study area. The research will be of interest to practitioners and academic researchers interested in mortgage valuation as a guide for conducting mortgage valuation in the study area.

Suggested Citation

  • Aliyu Bilkisu Adamu & Sani Habibu & Usman Hamza & Muhammad Hassan, 2018. "Ranking the Causative Factors of Mortgage Valuation Inaccuracy in Kaduna Metroplois," Real Estate Management and Valuation, Sciendo, vol. 26(3), pages 71-81, September.
    • Handle: RePEc:vrs:remava:v:26:y:2018:i:3:p:71-81:n:6
    DOI: 10.2478/remav-2018-0026
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    References listed on IDEAS

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    1. Brown, Gerald R & Matysiak, George A, 2000. "Sticky Valuations, Aggregation Effects, and Property Indices," The Journal of Real Estate Finance and Economics, Springer, vol. 20(1), pages 49-66, January.
    2. Gabriel Kayode Babawale & Modupe Omirin, 2012. "An assessment of the relative impact of factors influencing inaccuracy in valuation," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 5(2), pages 145-160, June.
    3. Oluseyi Joshua Adegoke, 2016. "Effects of valuation variance and inaccuracy on Nigerian commercial property market," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 34(3), pages 276-292, April.
    4. O.A. Ogunba & C.A. Ajayi, 2007. "The response of Nigerian valuers to increasing sophistication in investors' requirements," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 25(1), pages 43-61, February.
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