Developing a Mass Appraisal Approach for Residential Properties in Minna Metropolis.

Abstract

Mass appraisal has become a standard approach of valuing large groups of properties especially for taxation purpose. It is widely used in developed countries including the US, UK and other European countries as well as in some developing countries such as Malaysia. In this paper, the application of mass appraisal model in Nigeria was examined. Hedonic based multiple regression analysis was used to analyse a set of 91 transaction data recorded between 2009 and 2013. The regression results revealed the contributory effect of the different housing attributes on the house price. Based on these results, a mass appraisal model for residential property valuation was developed. The performance of the model was evaluated using ratio study and the model was found to be adequate. It was discovered that a good mass appraisal model can bring about improvement in property tax administration in the study area by reducing cost and ensuring fairness and equity, which are very crucial in any property tax assessment process. The paper recommends that future studies should incorporate GIS, more explanatory variables as well as larger sample size to improve the accuracy of the model.