Effect of Client Pressure on Market Valuation of Residential Properties in Minna, Nigeria

Abstract

Market valuation is required for several purposes, including the sale of real properties. In the residential property market in Minna, most property valuers are under pressure from clients (property owners) to sell their properties at asking prices determined by them, the valuers’ valuation opinion notwithstanding. This study examines the effect of this pressure on the market valuation of residential properties in Minna, Nigeria. Data for the study were collected from real estate firms operating in Minna and analysed using multiple regression analysis. The primary objective of the study is to examine whether client pressure has significant influence on market valuation of residential properties in the city, using property owners’ asking price as proxy for the source of pressure. Results of data analysis showed that clients’ asking price which is a source of pressure in the determination of market values of residential properties by valuers in the city produced a negative regression coefficient (-0.05899) at p˃ 0.05 when used in predicting the sale prices of the properties. This implies that although property valuers in Minna experience some form of pressure from clients, such pressure has no significant effect on the market valuation of residential properties in the city.