Determining house price for mass appraisal using multiple regression analysis modeling in Kaduna North, Nigeria

Abstract

The research applied Multiple Regression Analysis (MRA) in estimating house price for mass appraisal in Kaduna north, Nigeria. Two basic micro determinants of house price were considered, namely; structural attributes and location of property. Using a sample of 106 house sale transactions data which were recorded between 2011 to 2015, MRA was used to determine the structural variables and locational attributes that have statistically significant influence on the house price. It was found that among the variables included in the MRA, year of transaction, type of house, availability of swimming pool, availability of security post, type of door and location of the property were significant in determining house price in Kaduna. However, number of bedroom, number of living room, type of ceiling, condition of the house were not significant in influencing house price. Using the significant variables, a mass appraisal model was developed for the study area. The performance of the model was evaluated using the ratio study method and the model was found to be satisfactory. It was recommended that, this model be used in mass appraisal of residential properties in Kaduna north in the future, with a view to improve accuracy, objectivity, efficiency, and fairness of the property taxation system, which will lead to generating more revenue for the government and, encourage physical infrastructural development in Kaduna North.

Keywords: Mass Appraisal, Multiple Regression Analysis (MRA), House Price, Valuation