Further, there is no previous empirical evidence on how banks or financial institutions value mortgage securities. Due to this, financial institutions may value mortgage securities without any clear and consistent basis resulting in confusion among experts and parties dependent on valuations for their business. In Ethiopia there is no mortgage valuation framework or a regulatory valuation institution. The study recommends the establishment of independent institution responsible for overall valuation activities including establishing standards and introducing valuation certification by considering the real property market system of Ethiopia. But discretion should be given to the valuer to choose the appropriate approach. Moreover, market and income approaches can be the potential approaches to Ethiopian setting. The study suggests market value can be a potential base as it reflects the actual value of the property expropriated. Due to this valuation variation and inaccuracy is common. The study found that, there is no standard and responsible institution for real property valuation. The study is grounded on desk review research in which existing literature is the main source. The purpose of this study is to examine the existing real property valuation practice for expropriation in Ethiopia and to suggest potential bases and approaches compatible to the Ethiopian real property market system.
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