Use of Less Relevant Heuristics in Mortgage Valuations in Tanzania
Valuation-surveyors, like all other disciplines, are invariably influenced by a host of factors when estimating values for different purposes. Faced with complex decision-making in valuation, many surveyors are compelled to make use of heuristics (shortcuts). The use of heuristics helps to improve i...
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Format: | Article |
Language: | English |
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University of Cape Town Libraries
2019-06-01
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Series: | Journal of African Real Estate Research |
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Online Access: | https://journals.uct.ac.za/index.php/JARER/article/view/660 |
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author | Agnes Nkundwe Mwasumbi David Ignace Tarimo |
author_facet | Agnes Nkundwe Mwasumbi David Ignace Tarimo |
author_sort | Agnes Nkundwe Mwasumbi |
collection | DOAJ |
description | Valuation-surveyors, like all other disciplines, are invariably influenced by a host of factors when estimating values for different purposes. Faced with complex decision-making in valuation, many surveyors are compelled to make use of heuristics (shortcuts). The use of heuristics helps to improve information processing systems and thus increase efficiency in decision-making processes. However, the unconscious use of these shortcuts often leads to errors in selecting solutions for the problem at hand. This study was aimed at confirming the use of less relevant and less researched types of heuristics in mortgage valuations in Tanzania. These included availability heuristics, representative heuristics and positivity heuristics. The study employed a survey research method whereby a sample of 56 valuation-surveyors from valuation firms based in Dar es Salaam were given questionnaires to complete. Out of the 56 questionnaires distributed, 44 were returned. The findings revealed surveyors’ propensity to use less relevant heuristics for virtually the whole valuation process. In all the identified uses of heuristics the surveyors were found to have diverted from the prescribed valuation procedure. Such behaviours have the potential for propelling the use of wrong inputs in the value assessment process and/or modifying the final assessed value. Therefore, the findings provide another explanation for the causes of the already observed valuation variance in Tanzania. |
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format | Article |
id | doaj.art-f742c1a5dbdb4965a3f05e2f04c7235b |
institution | Directory Open Access Journal |
issn | 2304-8395 |
language | English |
last_indexed | 2024-12-10T12:26:15Z |
publishDate | 2019-06-01 |
publisher | University of Cape Town Libraries |
record_format | Article |
series | Journal of African Real Estate Research |
spelling | doaj.art-f742c1a5dbdb4965a3f05e2f04c7235b2022-12-22T01:48:57ZengUniversity of Cape Town LibrariesJournal of African Real Estate Research2304-83952019-06-014112210.15641/jarer.v4i1.660514Use of Less Relevant Heuristics in Mortgage Valuations in TanzaniaAgnes Nkundwe Mwasumbi0David Ignace Tarimo1Department of Business Studies, Ardhi UniversityDepartment of Business Studies, Ardhi UniversityValuation-surveyors, like all other disciplines, are invariably influenced by a host of factors when estimating values for different purposes. Faced with complex decision-making in valuation, many surveyors are compelled to make use of heuristics (shortcuts). The use of heuristics helps to improve information processing systems and thus increase efficiency in decision-making processes. However, the unconscious use of these shortcuts often leads to errors in selecting solutions for the problem at hand. This study was aimed at confirming the use of less relevant and less researched types of heuristics in mortgage valuations in Tanzania. These included availability heuristics, representative heuristics and positivity heuristics. The study employed a survey research method whereby a sample of 56 valuation-surveyors from valuation firms based in Dar es Salaam were given questionnaires to complete. Out of the 56 questionnaires distributed, 44 were returned. The findings revealed surveyors’ propensity to use less relevant heuristics for virtually the whole valuation process. In all the identified uses of heuristics the surveyors were found to have diverted from the prescribed valuation procedure. Such behaviours have the potential for propelling the use of wrong inputs in the value assessment process and/or modifying the final assessed value. Therefore, the findings provide another explanation for the causes of the already observed valuation variance in Tanzania.https://journals.uct.ac.za/index.php/JARER/article/view/660heuristicsmortgage valuationvaluation standardsbehavioural study |
spellingShingle | Agnes Nkundwe Mwasumbi David Ignace Tarimo Use of Less Relevant Heuristics in Mortgage Valuations in Tanzania Journal of African Real Estate Research heuristics mortgage valuation valuation standards behavioural study |
title | Use of Less Relevant Heuristics in Mortgage Valuations in Tanzania |
title_full | Use of Less Relevant Heuristics in Mortgage Valuations in Tanzania |
title_fullStr | Use of Less Relevant Heuristics in Mortgage Valuations in Tanzania |
title_full_unstemmed | Use of Less Relevant Heuristics in Mortgage Valuations in Tanzania |
title_short | Use of Less Relevant Heuristics in Mortgage Valuations in Tanzania |
title_sort | use of less relevant heuristics in mortgage valuations in tanzania |
topic | heuristics mortgage valuation valuation standards behavioural study |
url | https://journals.uct.ac.za/index.php/JARER/article/view/660 |
work_keys_str_mv | AT agnesnkundwemwasumbi useoflessrelevantheuristicsinmortgagevaluationsintanzania AT davidignacetarimo useoflessrelevantheuristicsinmortgagevaluationsintanzania |