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Clients’ means of influence on mortgage valuation in Nigeria

Chukwuma C. Nwuba (Department of Estate Management, Kaduna Polytechnic, Kaduna, Nigeria)
Uche S. Egwuatu (Chika Egwuatu & Partners (Estate Surveyors and Valuers), Abuja, Nigeria)
Babatunde M. Salawu (Department of Estate Management, Kaduna Polytechnic, Kaduna, Nigeria)

Property Management

ISSN: 0263-7472

Article publication date: 17 August 2015

356

Abstract

Purpose

The purpose of this paper is to investigate client influence on mortgage valuation in Nigeria to establish and rank the means of influence clients employ, and the impact of firm characteristics on client influence.

Design/methodology/approach

A combination of cross-sectional survey and focus groups research designs was adopted. Questionnaire structured on five-point Likert format was used to collect data from a sample of valuation firms in five Nigerian cities. Descriptive statistics, χ2, and moderated hierarchical linear model were used for data analysis.

Findings

Clients’ means of influence on valuation are more of subtle approach than threat or coercion. The most prevalent means are respectively, plea for assistance, promise of continued retainership on banks’ valuer panels, and disclosing the loan amount. Client influence differs across cities; firm characteristics have no influence on client pressure.

Practical implications

The research provides basis for valuation bodies to review practice rules and standards and seek for legislation for valuer independence. It can serve as material for teaching and training in professional ethics.

Social implications

Biased valuations jeopardises credit risk mitigation process with potential for destabilising banks, finance sector, and consequences for the economy.

Originality/value

The study provides empirical evidence of the nature of client influence across several major Nigerian cities. In contrast to existing Nigerian studies that focus on single cities, the study covers several cities. It therefore provides a broad basis for problem-solving and decision-making.

Keywords

Acknowledgements

This paper derives from a part of the outcome of research on the subject of client influence on mortgage valuations in Nigeria. The report of the research was earlier presented as a conference paper at the West African Built Environment Research (WABER) Conference in Abuja, Nigeria in July 2012. The relevant sections of the research report have been heavily modified and completely rewritten to obtain the current paper. The researchers appreciate the comments made by participants at the conference.

Citation

Nwuba, C.C., Egwuatu, U.S. and Salawu, B.M. (2015), "Clients’ means of influence on mortgage valuation in Nigeria", Property Management, Vol. 33 No. 4, pp. 367-385. https://doi.org/10.1108/PM-03-2014-0016

Publisher

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Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited

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