What Lenders Want from Mortgage Valuation Reports: A Survey of Nigeria Banks

Abstract

Nigeria property market is witnessing enormous and continuous growth and changes for some years. This calls for an urgent need to explore the needs of the users of valuation report which serves as an important input to lenders' decision making. Focusing on banks in Nigeria, this study examined the needs of the banks with respect to the content of valuation reports. This is with a view of determining their needs so as to improve on the quality of valuers’ reports. The study surveyed the twenty-two (22) banks in Nigeria to obtain the relevant data. Their needs were examined according to the content of valuation reporting formate in Nigeria. Using mean, raking and relative importance index (RII) methods, the findings shows that what lenders want from valuation reports are to see more details relating to some important aspects of the property market; they are valuation calculations and uncertainty in valuation figures. The study concluded that the estate surveyors and valuers should be mindful of their clients' needs and try as much as possible to meet those needs.