 LENDING VALUE PROJECTION FOR HOUSING PROPERTIES USING LOAN APPLICATION DATAAlexander Adam ERES from European Real Estate Society (ERES) Abstract: German mortgage banks face an increasingly regulatory framework for real estate valuations. The introduction of this framework had two effects. It has made the approval for low value properties such as apartments more time consuming and hence costly, but at the same time it allows to build a more consistent and improved data base for analysis. Lending institutions will be looking to find solutions to decrease the additional costs these regulations have caused. A possibility could be the development of a model that is projecting lending values based on a set of valuation parameters, which are supplied for a loan application. In this paper a sample set of valuation parameters of apartments for a regional sub-market is used to build the model. The dataset will be employed in a range of statistical tests, which will include tests of publicly available data in order to identify outliers. The timeframe of the dataset was chosen to exclude any behavioural shifts in the market. Such an approach to valuation obviously only lends itself to a relatively homogenous real estate class such as apartments. However, if a relationship between the valuation parameters and the lending value can be established this result will enable lending institutions to be more cost efficient in their approval process for this asset class. JEL-codes: R3 (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2006_104 Access Statistics for this paper More papers in ERES from European Real Estate Society (ERES) Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.