VIHOW TO VALUATION REAL ESTATE OF THE BANK IN 2023
A real estate appraisal is one of the mandatory steps you must take when buying or selling a real estate product to avoid losing money unjustly. However, many people still do not know how to determine real estate prices. Normally, banks appraise land to determine the value when recovering the mortgaged property or when making a mortgage on the property. We should know the methods of property valuation to register a mortgage with the bank accordingly.
What is a real estate appraisal?
A real estate appraisal uses methods and tools to determine the value of a property in a certain area over a specific period.
The valuation of real estate is determined by the buyer or seller, that is, buying and selling, but must be consistent with the market price. Currently, there are two types of housing valuation: state-owned real estate valuation and market-based real estate valuation.
Ways to appraise real estate:
1. Location-based appraisal
First, you must determine which house or plot of land you want to trade in, which area, which area, which area. Located in the front or the alley? In a small alley or a big alley, a main alley, or a side alley. Because all these factors greatly affect the value of the real estate.
If the house is located on the street, a crowded residential area, very convenient for business and trade, the property value will certainly be very high, not only now and in the long run. In addition, you must identify the surrounding utilities and possibilities for future development. The more detailed your plan, the easier and more accurate the real estate appraisal will be.
2. Appraisal through the land price list
Currently, there are two types of land price lists, one is issued by the State, specifically issued by the Peoples Committee of the province, and the second is the land price list based on the market.
- Land price list according to the State: This is a collection of land prices for each type of land promulgated by the Peoples Committee of the province based on the method of determining land prices and the price brackets of different types of land. This land price list will be issued every 5 years and announced on January 1 of the first year. You can go online and search by keyword "land price list + area you need to find".
- The market price of land: Currently, the State does not regulate this issue, the market price of land is the land price formed through market activities, independent of the State price like the price agreed upon by the parties. Agreements in transactions such as transfers, leases, etc. Normally, the house price will be equal to the price on the land price list of the area prescribed by the State, multiplied by about 3.8 - 4.5 times. This ratio has been calculated by experts based on the difference between the land price set by the state and the actual land price in the market.
3. Appraisal through similar real estate
Another method of real estate appraisal is also very effective that is through similar real estate, that is, to find out the price of houses in the surrounding area. You can ask the people around to know the specific price, in our experience, you should refer to at least 3 properties in the surrounding area, and if you want to be more sure, you should refer to The more surveys, the better.
4. Appraisal by home condition
In addition to the above assessment methods, another thing to keep in mind is your current whereabouts. If its a house, what house is it? Level 1, Level 2, Level 3, or Level. Which house is that? Terrace house or villa, etc. If it is land, what land must be specified? Residential land, agricultural land, or another land. Also, determine if the geology of the site is weak or strong.
In addition, when valuing real estate, it is necessary to determine the construction time and the repair time to calculate the depreciation cost of the property. Typically, the depreciation rate for real estate is 10-30% of the propertys value, but determining the exact amount of this depreciation is also case-by-case.
5. Appraisal through a reputable valuation unit
If you want to know the exact value of the real estate, then you can spend a little money through a reputable unit to support valuation consulting. Valuation units have a lot of experience, and accurately assess the market and price, so they will make the most accurate and quick judgments.
One of the leading prestigious appraisal units in Vietnam is Indochina International Appraisal & Investment Joint Stock Company (INA) – SunValue, operating with many years of experience in the field of valuation with a rich data warehouse. With a team of professional and highly qualified appraisal experts, the appraisal process is fast and rigorous, minimizing the cost of the appraisal, etc., providing comprehensive solutions for each appraisal purpose, services include :
- Real Estate Appraisal – SunReal (Townhouses, land, factories, ...)
- Movables Appraisal – SunMovables (Machinery and equipment, production lines, means of transport, ...)
- Enterprise Appraisal – SunAsset (Purchase, joint venture, equitization, ...)
- Investment Project Appraisal – SunInvest
- Resource Appraisal – SunResources
How to appraise real estate prices of banks in 2023
After reviewing and evaluating your property to meet the conditions for the bank to agree to receive as security for the funding, you can continue to base on the following contents to determine the house value. land.
1. Basis of property valuation
The Bank relies on the legal record of the property, the actual condition of the property, and the applicable regulations to value the property for mortgage. Legal documents include:
- Certificates of land use rights
- Excerpt from the land plot map: The bank will ask you to provide the house and land that the red book does not record the length of the sides of the land plot.
- Identity card/citizen identification/passport, household registration book, marriage registration of the property owner
Note: The person whose name is on the red book or pink book is not the only person who owns the property. If the property formed after marriage is not the property of gift, inheritance/other regulations, it will be the property of both husband and wife.
2. Property Valuation
Currently, there are many methods of valuing assets such as comparison method, cost method, depreciation method, discount method, etc. However, for properties such as houses, apartments, apartments, and apartments Currently, most banks apply the comparative method or essentially the method of market comparison, ie valuing assets based on comparing purchase and sale prices with similar assets. on the market being traded.
Property valuation is the right to long-term residential land use
Based on property records, the bank will conduct an actual survey in the area where the property is expected to be mortgaged and refer to the purchase and sale prices of real estate with characteristics and locations equivalent to the specified property. most recent price.
From there, the bank evaluates the frequency of successful real estate transactions here. Compare with the proposed real estate mortgage in terms of area, size of the sides, alleys, entrances, and other advantages to come up with a reasonable selling price from the banks point of view.
For long-term residential land use rights with a depth of more than 20m
- Total area of the first 20 m of depth: Valuation based on market transaction value.
- Area of depth over 20m to the next 40m: Valuation at 60% of the value of the first 20m.
- Area of depth over 40m to the next 60m: Valuation at 40% of the value of the first 20m.
- Area of depth from over 60m: Valuation equal to 30% of the first 20m.
Valuation of properties that are condominiums and apartments
The process and method of appraising apartments and condominiums of the bank are similar to the appraisal of land use rights for long-term houses. However, for apartments, and apartments in new buildings, the bank offers an apartment purchase and sale contract with the investor, then there is an additional basis for apartment appraisal. The source of information the bank collects for comparison is the project investor.
Valuation of property is a house formed on land
If the house is built on land with a red book and the land is owned by the owner, the bank will appraise and accept this part of the value. However, if the Red Book does not identify which property owner the land belongs to, currently some banks do not accept this part of the value of this property in the value of the pledged property.
The principle of valuation of houses on land is that the value of the house does not exceed the total cost of building the house. Thus, in the process of building your house, remember the construction value, that value will be the maximum value that the bank determines.
Banks often use cost and amortization methods in their land-based home valuation methods. This means that the bank determines the total cost of building the house and depreciates the property over the years and values the house at present. In addition, the bank provides a personal appraisal statement to assess whether the home is damaged, cracked, or deteriorated rapidly and applies accelerated depreciation to the apartment. For permanent homes, banks usually define the total cost of building the home and normal depreciation as 25 years, although it should be 25-50 years by law.
