International Journal of Scientific & Technology Research

Home About Us Scope Editorial Board Blog/Latest News Contact Us
10th percentile
Powered by  Scopus
Scopus coverage:
Nov 2018 to May 2020


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]



Henerico, Evodius



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



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.



[1]. Ajayi, C. A., Olaleye, A. & Fagbenle, O. I., 2011. An Analysis of Clients' Satisfaction with Mortgage Valuation Reports in Nigeria, Ota: Covenat University.

[2]. Aluko, B. T., 2000. A Study of Appropriateness of Mortgage Valuation for Institutional Lending in Nigeria. Ile Ife: Unpublished PhD. Dissertation, Obafemi Awolowo University.

[3]. Aluko, B. T., 2007. Implications of the Current Trends in Mortgage Valuation Practice in Nigeria. International Journal of Strategic Property Management, Volume 11, pp. 17-31.

[4]. Aluko, B. T., 2007. Implications of the Current Trends in Mortgage Valuation Practice in Nigeria.. International Journal of Strategic Property Management, 11(1), pp. 17-31.

[5]. Australian Prudential Regulatory Authority, 2005. Residential valuation practices by LMIs and ADIs Survey Results.

[6]. Colwell, P. & Trefzger, J., 1992. Impact of Regulation on Appraisal Quality. The Appraisal Journal.

[7]. Crosby, N., Hughes, C. & Murdoch, J., 2004. Influences on Secured Lending Property Valuations in the UK.

[8]. Crosby, N., Lavers, A. & Foster, H., 1998. Commercial Property Loan Valuation in UK: Implication of Current Trends in Practice and Liability. Journal of Property Research, 14(1), pp. 27- 48.

[9]. Crosby, N. et al., 1997. Client Perception of Property Investment Valuation Report in the UK. Journal of Property Research, 14(1), pp. 27-48.

[10]. Dotzour, M. & Compte, R. L., 1993. Lender Perceptions of Appraisal Quality after FIRREA. The Appraisal Journal, pp. 227-233.

[11]. EMF, 2009. 2009 EMF Study on the Valuation of property for Lendeng Purpose, s.l.: EMF.

[12]. Haavelmo, T., 1960. A Study in the Theory of Investment. Chicago: The University of Chicago Press.

[13]. Juanil, D. M., Razali, M. N. B. M., Newel, G. & Eni, S., 2008. Quqlity of Valuation Report. [Online] Available at: http://www.inspen.gov.my/inspen/v2/wp-content/uploads/2017/03/23.-Prof.-Dr.-David-Martin-Juanil_Quality-Valuation Report-in-Malaysia.pdf [Accessed 5 10 2018].

[14]. Knitter, R., 1993. What Clients Want from Appraisal Reports. The Appraisal Journal, pp. 272-276.

[15]. Mangioni, V., January 2016. The Evolution of Valuations for Mortgage Lending Purposes. University of Technology Sydney.

[16]. Newell, G., 1995. The Quality of Valuation Reports.. The Valuer and Land Economist, 33(5), pp. 358-360.

[17]. Newell, G., 1999. The Quality of Valuation Reports in Australian;. Australian Property Journal, 35(7), pp. 605-608.

[18]. Newell, G. & Barrett, V., 1990. The Quality of Valuation Reports. The Valuer, 31(2), pp. 96-98.

[19]. Ogunba, O. A. & Ajayi, C. A., 2007. The Response of Nigerian Valuers to Increasing Sophistication in Investor's Requirements. Jouranl of property investment and Finance, Volume 25, pp. 43-61.

[20]. Oluwunmi, A. & Akinjare, O., 2013. What Lenders Want from Mortgage Valuation Reports: A Survey of Nigerian Banks. Journal of Economy, Management and Social Sciences, 2(5), pp. 202-206.

[21]. Oluwunmi, A. O., 2008. A Study of the Quality of Property Valuation Reports in Nigeria, Unpublished M.Sc Thesis of the Department of Estate Management, Covenant University, Ota.

[22]. Oluwunmi, A. O., Cyril, A. A., Abel, O. & Olabosipo, F. I., 2011. An Analysis of Clients' Satisfaction with Mortgage Valuation Reports in Nigeria

[23]. Shlaes, J., 1993. The Quality Appraiser Report. The Appraisal Journal, (Oct):, pp. 607-610.

[24]. TMRC, 2018. Tanzania Mortgage Market Update, Dar es Salaam: TMRC.