Sales Model. "no Reason To Check Out" Risk Analysis

The flourishing economy has promoted the rapid development in real estate market for the past few years. In order to prevent the economy from overheating, the Chinese government implemented"Tighter monetary policy"to adjust the pace and structure of economic development in the second half of 2007. In the same year ,the global financial crisis , which caused by the U.S. subprime mortgage crisis , made enormous impact on our entity economy and led to an economic slowdown. Affected by domestic and international elements , the inflection point of national real estate market has turned up ,the saleroom of the market has shrunk dramatically and the same as the debt collection .Under this condition ,a so-called sales mode"Unconditional returned house"appeared and be promoted rapidly in the nationwide .However, the great risk hidden behind this sales mode was not taken into accout by the market and the consumers.In this article, we will reveal the root cause leading to the promotion of this sales mode through the analysis of both the current market situation and the process of development of"Unconditional returned house", and then we will discover the market risk, credit risk and legal risk of this model from the three subjects :developers ,buyers and financial institutions . It includes three details : Firstly ,in the process of risk analysis to developers ,theoretical analysis and quantitative analysis with KMV model are used to calculate the probability of the anticipatory breach buyers and also to expose the capital risk which developers are faced with . Secondly ,with the method of quantitative analysis and theoretical analysis ,we will analyze property buyers in order to reveal the credit and legal risk they are facing .Finally , we analyze financial institutions with theoretical analysis to show the credit risk that the bank will confront in mode of"Unconditional returned house". Besides , in the basis of detailed analysis of three subjects'risk ,this article provide practical measures and suggestions to decline the risk that is suffered by the subjects and assure the smooth development of our national estate .Through comprehensive analysis ,the conclusion can be drawn that the mode of "Unconditional returned house"takes high credit risk ,which should be specially paid attention to by the government and other subjects. The effective measures should be carried out to promote its advantages to the real estate and reduce the financial risk may induce , so we can ensure the healthy operation of real estate market.