Services for specific groups of corporations which lend to members within the organization such as cooperatives, finance, leasing. We may collectively refer to as Non-Bank. These organizations receive collateral as real estate; land and building. These properties come together with risks for the organizations as follow:
- As organizations refer to the government’s land appraisal value, it should be noted that values reported by the government do not necessarily be accurate. Values are not specifically indicated for each individual plot and are not appraised according to current conditions. Hence, values can be higher or lower than the real market value.
- The government’s land appraisal values do not indicate any existence of buildings or construction on the land. In reality, the presence of buildings usually affects the value of the land.
- The land received as collateral may be blind land without proper entrance and exit difficult to access.
- In reality, land may be subject to other physical obligations such as servitude, tenure, dwelling, use, invasion, lease, and many other clauses that would cause land values to vary away from the reported government’s appraisal values.
The foregoing is considered some of the corporate risks of a Non Bank organizations are exposed to when acquiring credit collateral from government appraisal values. Prospec Appraisal, therefore, proposes a service design to mitigate these risks mitigation for these organizations.
- Market review service for land only. With the strength of our big-data, we are able to provide our opinion based on the principles of the market value for comparison with the official values according to the government.
- Market review service for land with buildings. With sufficient building information, especially collateral property in residential projects, the review can be done with a high level of confidence.
- Physical inspection service of collateral property based on data from the professional appraisers using aerial photographs to observe the collateral condition to look for any impairment which could affect the value such as potholes, land encroachment, expropriation, etc.
- Service to determine the land’s entrance and exit, in order to make sure that the land does not fall under the category of ‘blind’ land.
- Providing an opinion on the accuracy of the appraisal report made internal or other external appraisers. We have certified senior appraisers to verify those reports.
- Service for specific information such as market information or legal information related to the subject property.
And this is an example of a multi-channel professional service that gives corporate executives the option of providing low-cost services. Practitioners do not put themselves at too much risk. Instead, it gives the most significant benefit to Non-Bank organizations. Therefore, it is another option to be presented to the management.