WHY WHEN MORTGAGING A PROPERTY THAT IS REAL ESTATE MUST BE VALUATION?

Asset valuation at the request of the bank is understood as the fact that the bank/credit institution or the property owner hires an independent appraisal company to determine the value of the mortgaged property at the bank into cash. to borrow money or liquidate assets.

Why Should Collateral Valuation When Borrowing Bank Loans?

When reviewing a customers loan application, one of the first things the Bank needs to evaluate is to determine the value of the collateral for that loan - also known as collateral. Currently, most banks stipulate that the loan disbursement rate for customers is from 70 to 85% of the value of the collateral.

Therefore, the appraisal of collateral prices is a mandatory requirement of the law and a legal basis for banks to consider a reasonable and safe loan level for their loans.

In other words, the appraisal of collateral assets at the Bank aims to ensure that loans are safe and able to recover loans when they are due. Therefore, such collateral must be appraised according to the standards and regulations of the Law on Valuation of Vietnam.

Relationship between collateral and bank loans.

When you apply for a mortgage bank loan, depending on the value of the loan and its purpose, you can use many different types of collateral. The more valuable the collateral, the more likely it is to secure large loans with high credit limits. In contrast, low collateral assets, prone to price fluctuations, will often find it difficult to bring the desired loan amount of customers.

Bank appraisal process.

Step 1: Receive information about collateral, and classify assets according to the regulations of the appraisal industry
Step 2: Make a valuation plan
Step 3: Field survey, collect information about the property
Step 4: Build appraisal report
Step 5: Control the report
Step 6: Issue deed and appraisal report

Valuation fee for collateral at the bank

Fees for appraisal of collaterals at the Bank are usually regulated according to the value and classification of assets such as real estate, movable assets, enterprises, investment projects, means of transport, etc.

Valuation fees are usually calculated by the appraisal companies as a percentage (%) of the total value of the secured assets plus other costs incurred such as travel expenses, inspection fees (if any) – upon receipt of information, and preliminary value of that property.

Or it could be a package fee agreed between the appraisal company and the property owner. But in general, the appraisal fee is usually very small compared to the total value of the property to be appraised.

Currently, banks often associate with independent, specialized appraisal units to value the collateral assets of customers to ensure the most objectivity and accuracy.

SunValue is currently a strategic partner associated with Financial Institutions with more than 20 prestigious banks at home and abroad such as Vietnam International Bank (VIB), BIDV, Vietcombank, Vietinbank, Sacombank, MSB, Agribank, Techcombank, SHB, HSBC, Siam Commercial Bank Public, Woori Bank, Standard Chartered Bank, Bank of India, Shanghai Commercial Savings Bank, etc., creating the best conditions when customers need to appraise assets or mortgage to get a bank loan. row. The cooperation agreement between SunValue and the banks defines a long-term cooperation relationship between the two parties and is committed to providing customers with the best Valuation service.

With 21 years of establishment and development, SunValue is proud to become one of the leading real estate appraisal units in Vietnam, the leading brand in Vietnam 2023, and the strong brand in Asia 2021, with a system of nearly 50 Branches, transaction offices across the country. As a reputable, independent valuation unit, pioneering in technology application in valuation, helping to monitor real estate price fluctuations, and completing price data to support the development of Vietnams real estate market and International.

Contact SunValue now for questions and consultation!

SunValue – National brand that has actively contributed to the development of the appraisal industry in Vietnam.