Buying a house is one of the most important decisions we will make in our lives and in a densely populated country like India, the search for the right property can be challenging. The complexities of the process intensify when it comes to selecting the appropriate property, securing a loan, and registering it in your name – all of which take significant time. The heterogeneity of the Indian market and lack of transparency in transaction data render both purchase and lending decisions complex, subjective, and protracted. As the sole document that determines the loan amount, Valuation Reports could not play a bigger role in the mortgage lending process.

In India, the Sales Comparison Method is one of the most well-known and widely used techniques for real estate valuation, particularly in the mortgage valuation industry. However, the task of finding comparable data poses a significant challenge due to the lack of data capture and transparency in market transactions. Traditionally, Valuers rely on two sources of information, property classifieds listings and registry data. Unfortunately, neither of these sources provides an accurate reflection of market dynamics. The former is notorious for being heavily manipulated to attract customers, while the latter is frequently undervalued due to the existence of a parallel economy. Valocity’s digital processes not only streamline the entire valuation workflow but leverage Artificial Intelligence (AI) and Machine Learning (ML) to capture data and create a comprehensive accurate data repository for valuers. This enables valuers to mitigate risk by using digital tools such as price trends and aggregate market dynamics that empower data driven decision making, resulting in a more precise and reliable valuation process.

Despite recent growth, the Indian valuation ecosystem remains fragmented, characterised by disparate data and a lack of digitisation. An estimated 85% of local valuers undertake mortgage valuations without leveraging technology and digital tools, making it challenging to scale and support the profession widely accessible.

Valocity’s India’s award-winning mortgage valuation platform was designed to solve these challenges. Valocity’s extensive experience working with over 70 lender partners across multiple geographies has been pivotal in developing an entirely digital workflow that empowers India valuers to digitise their processes, embrace global best practices, and expand their reach exponentially. Valocity’s panel Valuer users have now embraced the transformative technology and are experiencing benefits in key areas such as:

  • Digital workflow achieving operational excellence: Valocity’s smart digital workflow divides the valuation process into clear, self-contained segments to allow valuation firms to assign tasks to professionals with the most appropriate skill sets and optimise operational costs. The platform delivers the ability to monitor progress and identify anomalies at a granular level, empowering valuers to make informed decisions with speed, precision, and accuracy. Automated report creation supports a faster turnaround time and increases performance efficiency, resulting in superior customer experience.
  • Improving customer retention: Valocity’s Turn Around Time (TAT) management mechanism enables supervisors to monitor and manage the process effectively. This tool is capable of monitoring various delay triggers like document pending, property inspection on hold, etc. increasing customer retention and satisfaction.
  • Automated error-free report generation: Valocity’s automated digital report generation tool ensures that reports are appropriately formatted, capturing, and validating all mandatory fields to eradicate any potential errors and rework. The tool standardises, verifies, and ensures the accuracy of data, resulting in unparalleled report quality. The nationwide availability of standardised digital reports through the Valocity platform has significantly increased same-day valuation completion rates as well as the next day completion rates. The cancellation rate of valuations decreased from over 10% to 4% and duplicate valuations have been reduced to minimal levels for one of our lender clients.
  • Security and compliance: Valocity’s solutions are built on Microsoft’s global standard platforms, ISO 27001 certified and fully compliant with all relevant IT security and RBI guidelines. This ensures valuer users benefit from best-in-class data security and compliance with banking regulations, minimising compromised data threats, and saving additional costs for data storage.
  • Access to market insights and trends: Valocity’s data analytics tools are a key enabler to support the property ecosystem. Surround Market Analysis tools provide unique insights into market data, analysing factors such as listing price, historical valuation data, price trend analysis, and property concentration analysis, among others. The tool enables visibility and understanding of your business by tracking case initiation and cancellation trends, employee TATs, and identifying bottlenecks. The utilisation of automated analytical tools not only results in immense time savings but also mitigates the need for manual dependency in data management and analysis, increasing the operational efficiency of the organisation.
  • Audit trail: Valocity’s secure communication channels and comprehensive audit trail offer confidence and protection in the event of any unforeseen legal requirements. The regulatory body mandates that auditors review lenders’ credit assessment and approval procedures, in which valuation reports play a key role. To comply with the regulations, at times valuers must supply all documents, including communication and instruction records, to satisfy auditors’ requests. In a manual process, this becomes a burden, consuming a significant amount of the valuers’ time and effort. Valocity simplifies this procedure by utilising an integrated data management system and audit trail, which can be produced with a single click.

As a technology partner, Valocity digitally connects lenders and valuers to enable quality data capture, increased efficiency and accuracy and a more seamless customer experience for the entire property ecosystem. For more information about how Valocity can help you simplify valuation and bank processes and deliver significant value, speak to a member of our team today.