Necessity of a Mortgage Real Estate Appraisal

The goal of real estate appraisal is to determine the real estate market value. It is the price that is formed at the time of real estate transaction in the condition that the parties to the transaction have sufficient information and time to choose and make decisions; the market is stable and less volatile; transaction relationships based on agreement, voluntarily, without price coercion; Trading parties act purely on a basis of knowledge and prudence.

The market value of real estate is the main basis for the valuation of assets. When the conditions on the price are satisfied, the property will be used as a reference basis for real estate in the market.

However, in reality, there are many factors affecting the price of real estate that falsify the market value, also known as non-market value. Real estate prices will not reflect the correct market value when violating the following conditions: there is a force in transactions; the buyer is the part owner; buying and selling between family members; transactions between internal companies; transactions of successful businesses; selling exclusive products; the buyer has the right to occupy the property; and sell

Shared property. When encountering these situations, the assessor needs to collect comparative information, adjust or eliminate the non-conformities and cannot be included as a reference price for the target property.

Necessity of valuation of mortgaged real estate It is essential to determine the correct value of collateral because it is an important basis for the Bank to offer reasonable lending rates, avoiding risks for banks. time to increase competitiveness in banking operations.
Real estate is a special commodity, the real estate market fluctuates constantly, can spike but can also "freeze" quietly. That is why the valuation of collateral real estate is very necessary for each bank, ensuring safety and reducing risks.

For the valuation of collateral, the loan is secured by real estate yield. Lenders want to lend only on a secured loan and minimize any risk in the transaction. Normally, the loan is secured by the value of the purchased property, so in case the borrower fails to pay the debt, the value of the collateral will be secured as the basis to secure the loan.

The valuation of mortgage real estate is not only done at the input stage of loan, but also must be considered in the stage of asset sale in case the customer is unable to repay the loan. Because after mortgaging the property, the mortgagor still can use that property, during this time the mortgaged real estate is worn out, damaged is unavoidable. Before disposing of the mortgage property, it is necessary to evaluate the property to determine if the propertys value is enough to pay off the debt, the customer also wants to know if the value of the property is higher than the debt.

If the assets are not priced but sold, it will cause damage to customers as well as to the Bank. In addition, in the current integration conditions, the fierce competition between domestic and foreign banks is requiring banks to change their business strategies. One of the changes is to improve credit process and redefine the value of mortgage real estate to attract customers. Moreover, the current trend of developing real estate business in some countries around the world is to strongly develop secondary financial market segments such as UK, US and Australia. Therefore, the valuation of mortgage real estate is very important. Only when the mortgage value is determined to be equal to the market value and allowed by the legal system, will the secondary real estate market have a chance to develop.

Indochina International Investment & Appraisal Joint Stock Company (INA) with many years of experience in real estate valuation for the purpose of bank mortgage loan. The certificate of Indochina International Investment & Appraisal Joint Stock Company (INA) is fully legal and valid nationwide, used for many different purposes such as: Purchase, sale, transfer, shares capitalization, joint venture capital contribution, compensation - clearance, civil dispute resolution, liquidation, property sale, bank loans, proof of student assets, tourism ...