Research On Mortgage Appraisal Of Construction In Progress And Its Appraisal Methods Improvements

Since the reform and opening up, with the reform and change of the land use system andthe urban housing system, real estate finance market is gradually expanding. Prevalence ofhousing loans, real estate mortgage loans, real estate investment trust and other real estatefinancial activities, not only the financial sector and real estate industry closely together topromote the circulation of funds, but also for financial institutions to expand the business, forthe development of the real estate industry to provide economic support. Real estate mortgageloans as an important part of real estate financial activities, to be able to work well, is basedon a scientific and reasonable loan limit. Construction in progress due to its specificity,making its determination of the loan limit is more difficult, and unreasonable loan limit easilybring greater financial risk to the financial institution to recover, therefore, the standardizationon mortgage appraisal of construction in progress and the improvement of these appraisalmethods and techniques are important issues for appraisal agencies, and related to the sounddevelopment of real estate financial markets.This article is based on China’s current mortgage－related laws and regulations ofconstruction in progress, and discusses mortgage assessment related issues of construction inprogress in detail, then makes suggestions for improving appraisal methods, and applies theimproved methods on a case. Firstly, the article illustrates the current status of research in thefield, the content of this paper and the research methods applied. Secondly, the paper gives abasic overview on mortgage appraisal of construction in progress from these aspects ofappraisal features, object and scope, purpose and value type, estimate time and principles,mortgage value factors, etc. Then the essay makes improvements on appraisal methods ofconstruction in progress and illustrates the applications of appraisal methods from varioustypes of real estate. Finally the paper applies the methods from the previous research, throughthe specific case of JY construction in progress, and describes the basic process of mortgageassessment of construction in progress.