What is 'collateral value' in SAP RE - Real Estate Management?

collateral value - Overview

• Component: RE

• Component Name: Real Estate Management

• Description: A value representing the secure selling price of a property. The collateral value is used as the basis for estimating the mortgage on a property. It can be determined in different ways by creditors.

collateral value - Details

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  Key Concepts: 
  Collateral value is a term used in SAP Real Estate Management (RE) to refer to the value of a property that can be used as security for a loan. It is calculated by taking the current market value of the property and subtracting any outstanding debts or liabilities associated with it. The resulting figure is the collateral value of the property. 
  
  How to use it: 
  In SAP RE, collateral value is used to determine the amount of money that can be borrowed against a property. It is important to note that the collateral value of a property can change over time due to changes in market conditions or other factors. Therefore, it is important to regularly review and update the collateral value of a property in order to ensure that it accurately reflects its current market value. 
  
  Tips & Tricks: 
  When calculating the collateral value of a property, it is important to consider any potential liabilities associated with it. This includes any outstanding debts, taxes, or other financial obligations associated with the property. Additionally, it is important to take into account any potential changes in market conditions that could affect the value of the property over time. 
  
  Related Information: 
  For more information on collateral value and how it is used in SAP RE, please refer to the SAP Help Portal or contact your