Application Of The Method Of Mass Valuation Of Real Estate Collateral Valuation

As the financial market fully open in China, the competition between commercialbanks is increasingly fierce. On this condition, commercial banks began to pay moreattention to strengthen the cost management, optimize the different levels informationabout cost and benefit, reduce risk and thus improve their market competition ability andvalue creativity. Therefore, how to adopt a scientific appraisal method to evaluate themortgage property value in a timely, dynamic, rational, objective and fair manner, hasbecome an important part of the commercial banks to strengthen risk management. Theimportant characteristics of mass appraisal technology is that it put the mathematical tools,such as measurement and statistical tests, into the evaluation process, so the assessmentresult will be more objective and accurate. Abroad, the application of mass appraisal hasdecades of history, relative to our country, the abroad mass appraisal technology is moremature. At present, the technology of the mass appraisal has been widely applied toproperty tax mass appraisal system，and also used in the private sector which associatedwith real estate appraisal management, such as commercial banks and other financialinstitutions. Therefore, drawing lessons from foreign advanced experience will better helpus to establish mass appraisal model for real estate mortgage valuation which suitable forour country. The latest research report of central bank’s shows that the gross of residentialreal estate mortgage loans were large and it keep high growth speed in recent years inChina. With the advent of the era of big data, the application of mass appraisal method inthe field of China’s real estate mortgage value evaluation is faced with both opportunitiesand challenges.Around the theme of study, my paper first introduced the relevant theories of the realestate mortgage and mass appraisal method, and the technique principle and process ofmass appraisal. According to the analysis of the reality of residential real estate mortgagein our country, this paper expounded the application advantages of the mass appraisal andthe opportunities it will be faced. And then, my paper detailed introduced its applicationsin the domestic and foreign, On the basis of summarizing foreign experience, I selected acase to demonstrate the construction of a model. Finally, my paper put forward someSuggestions about evaluation mass appraisal application in the real estate mortgagevaluation.