RVSolutions INDIA

Focus
Most of the frauds in realty finance can be attributed to credit risk and property risk. While credit
risk is aptly addressed by credit evaluation methods developed over time, valuation experts can
assist in mitigating property risk.
The Proprietor of the company oversees the performance of the Team activities & Clients
requirement directly. This was done to ensure that the team functions with complete
independence and is outside the sphere of influence of the business.
With the reduction of dependence on external valuation agencies, the RVS team has been able
to further mitigate the fraud risks; besides, it has also enabled the RVS team to maintain an
optimal equilibrium of external and internal valuation experts. Further to this, as a measure of
internal control, cross audit is conducted by an independent team.
Structure
RVS team members are a group of qualified Civil Engineers, graduates/post graduates with indepth
knowledge & experience in construction and valuation industry. These experts further
undergo minimum 50Hours of specialized training of IOV RVF on new initiatives and
developments in this field, through professional training, seminars and in-house training.
At present, the team comprises of over 08 members & 10 Associate Valuers, based out of 10
locations in 3 states across India. In addition, 10 non-engineering staff members support the
team for data maintenance, analysis and back-end operations.
Technique
Various methods are used for the valuation of the real estate properties. Some of these methods
are:
• Direct Comparison Method
• Income Approach Method
• Summation or Cost Approach Method
• Residual Value Method
The purpose of valuation is also essential while applying a specific method in a valuation
exercise. Examination of property post defining the purpose will result in arriving at the most
probable use of the property. Once the value definition and the probable best use have been
determined, the appropriate methodology is applied to arrive at the value. Of all the above
methods, Direct Comparison Method and Residual Value Method are the most widely used by
the RVS team.
Quality Control
As mentioned above, independent monthly audits are conducted by RVS to cross check &
ensure risk mitigation. 10% of all valuation exercises conducted in a month are subjected to this
audit, covering all locations, product mix and high value properties.
Initiatives
RVS team can be credited with many a path breaking initiatives. Amongst the various pioneering
initiatives undertaken, Real Estate Price Movement Tracking and Development of the Property Price
Index have been the key highlights.
Development of Property Price Indices and monitoring price movements of over 4500 real estate builder
projects across country every month are only some of their significant achievements.
The team has successfully completed valuation of over 35,000 units till date besides monitoring price
movements on a monthly basis of over 400 real estate projects pan Maharashtra.