Research On The Mortgage-value Assessing Of Construction In Progress

Bank loan, which has become one of the important funding channels for real estate developers as China’s real estate market booms in recent years, not only satisfies the financial needs of real estate developers, but also brings economic benefits to commercial banks. With the gradual increase in the business of real-estate development loans, however, more and more non-performing loans surface. In addition to the developers’ capital shortage resulting from sluggish sales, the reasons for such non-performing loans also include poor valuing of the mortgage properties, which leads to adequate guarantee capacity. Therefore, in order to ensure the safety of credit funds, how to accurately evaluate the mortgage values of constructions in progress is an urgent challenge faced by commercial banks.In this paper, based on the analysis of concepts regarding mortgage on constructions in progress, the traits and special risks of constructions in progress are first understood by comparing such constructions with ordinary completed constructions, before the impact of their traits and risks on their mortgage values is analyzed. Then, banks have a perspective that is different from of the traditional third-party assessing institutions in terms of evaluating mortgage properties. And the banks’ perspective is compared with the traditional one, from such aspects as the mortgage scope of constructions in progress, the identification of value categories and the assessing methods; Through the comparison, it is found that the mortgage-value assessing of constructions in progress from the banks’ perspective features the requirements of accuracy and timeliness. Finally, in order to meet these requirements, by taking into account the traditional cost method, the BIM model based on big data is employed to obtain more accurate and efficient values of the elements in the cost method; meanwhile, the analytic hierarchy process(AHP) and the expert scoring method are applied to determine the risk coefficient for specific constructions in progress, thereby accessing the values of constructions in progress used in mortgage.The study here can not only inspires new thoughts for assessing the mortgage values of constructions in progress, but also offers technical supports for commercial banks intheir valuing ofconstructions in progress, thushelping them prevent credit risks.