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IJSTR >> Volume 8 - Issue 1, January 2019 Edition



International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616



Examination Of Degree Of Satisfaction Of Lenders From Valuation Reports For Mortgage In Tanzania

[Full Text]

 

AUTHOR(S)

Henerico, Evodius

 

KEYWORDS

Borrowers, Lenders, Mortgage, Reports, Satisfaction, Valuation & Valuers

 

ABSTRACT

The mortgage market in Tanzania has been fast growing with the entrance of more lenders from time to time evidenced by the increase of lenders from 3 by 2009 to 31 by 2017. Such growth called for more valuation services from the respective professional. The demand for valuation services by lenders came along with the increase of valuation companies which gave room for lenders to choose few among them to offer valuation services. Such practice implies competition among valuation companies towards the need of the clients specifically lenders in the eye of borrowers. The question was, does the valuation firms satisfy the thirsty of the lenders? This study sought to understand whether Valuers satisfy lenders when carrying out valuation for mortgage. A total of 47 sample who were officials and managers dealing with mortgages in lending institutions were reached through questionnaire in form of eSurvey and print outs and successful 33 responded making a response rate of 70%. The data were quantitatively analyzed by descriptive statistic techniques in Microsoft Excel. The results show that the majority of respondents were satisfied with valuation services offered by their respective valuation consultants. Statistically, 64% of respondents said that they were being satisfied with the utility level of (61-71) %. Also, 18% of respondents said that they were highly satisfied with utility level above 70% whereas the remaining 18% of respondents ranges from being partially satisfied to just satisfaction with utility level below 60%. Furthermore, 73% of those who asked for additional information from valuers apart from those contained in the reports said that they receive good response whereas the remaining 27% said that they receive a satisfying responses. The study recommend to the lender, the involvement of more valuers or experts in real estate to facilitate the proper interpretation of valuation reports and improve instructions of the valuation assignments. To valuers, the study call for further diligence in discerning which contents to be included in the valuation reports. There are information which may not be asked by lender during instruction but useful as judged by valuers, that ought to be added.

 

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