Mortgage Investment in Osun State: An Evaluation of the Role of Estate Surveyors and Valuers

Abstract

The determination of value of land and landed properties for all purposes is by virtue of decree No 24 of 1975 the responsibility of an Estate Surveyor and Valuer. Concern has risen over the incursion of non Estate Valuers in Mortgage Valuations and it is perceived that banks are beginning to doubt the Estate Valuer’s opinion. This paper investigates Mortgage investment with respect to the Estate Valuers’ work. A survey research method was adopted for the study. Two different sets of well structured questionnaires were served on 25 practicing Estate Valuers and loan officers in the 22 commercial Banks (respectively) in Osogbo and Ile-Ife of Osun state. The data collected were analyzed using frequencies, charts, mean score, likert rating scale and regression analysis. Findings revealed among other things that majority of the Estate Valuers (47.07%) often adopt cost method in valuation for mortgage purposes. The general consensus was that the Estate Valuers’ figure provides adequate cover for the amount of loan advanced. The regression analysis results indicated a high positive correlation of 0.935 between the variables. Of the four predictors used, only the second predictor (Valuer's do not carry out enough investigation/inspection) significantly predicts Valuer’s work. The study recommends that Estate Valuers should ensure adequate inspection and proper reporting of properties. The Nigerian Institution of Estate Surveyors and Valuers is urged to organize a mandatory educational enlightenment programmes aimed at keeping Estate Valuers abreast with the global trends in valuation practices to enable them satisfy their clients’ expectations.