Financial institution’s satisfaction with outsourced mortgage property valuation in Lagos Nigeria

Abstract

The increasing complexity of real estate financing in emerging markets has heighten the reliance of financial institutions on outsourced mortgage property valuation, and as such raises serious concerns on service quality delivery, risk exposure, and decision reliability issues. This study specifically examines the key determinants of financial institutions’ satisfaction with outsourced mortgage valuation services in Lagos, Nigeria, which is the leading commercial real estate hub in Nigeria. The study haven anchored on service quality and agency theory frameworks, it adopts a cross-sectional survey design, targeting commercial banks, primary mortgage institutions, and other real estate lending organizations in Lagos Nigeria. Data were collected through structured questionnaires and analyzed using a descriptive statistics of relative important index {RII). The study operationalizes satisfaction as a multidimensional construct influenced by valuation accuracy, timeliness, professional competence, regulatory compliance, independence, and communication effectiveness. The result  revealed that the top three, which are most satisfied with are "Estate Valuers willingness to help FI even when not convenient" (RESP 4), having means 4.383 and ranked 1st, "Promptness of Estate Valuers work" (RESP 2) having means of 4.314 and ranked 2nd and"' valuation appointment given by valuers" (RESP 1) having means rating 4.302 and ranked 3rd  while the least three, which are least satisfied with are "accuracy of valuers opinion of values (RELIA 3) with mean rating of 2.895 and ranked 18th" dependability of estate valuers opinion of values" (RELIA 2) with a mean rating of 2.802 and ranked 19th, "appearance of physical facility of valuers (TANG 1) having means 2.791 and ranked 20^th. The paper contributes to the literature on valuation outsourcing in developing economies by integrating service quality dimensions with institutional risk considerations. The study therefore recommends a strengthened regulatory oversight, standardization of valuation practices, continuous professional development, and the adoption of automated valuation models (AVMs) to enhance consistency, transparency, and efficiency in mortgage valuation processes.

Keywords: Mortgage valuation outsourcing; client satisfaction; service quality; valuation accuracy; financial institutions; Lagos; Nigeria; real estate finance.

DOI: 10.7176/EJBM/18-7-03

Publication date: July 30^th 2026