Using our geo-spatial skills and unique analytical capabilities we have developed numerous systems and tools that assist lenders and insurers in identifying exact property locations, accurately valuing the property and property portfolios in real-time and attaching relevant risks associated to each property.
Automated Valuation Models (AVMs)
We have developed industry leading automated valuation models to estimate property values for the South African residential property market. Our models have been developed based on global best practices and our proprietary property databases are extensively used in the Banking and Real Estate markets in South Africa. Our core AVM model has been continuously refined and is the only one regularly reviewed by international rating agencies and bank credit committees.
Valuations Systems (EzVal)
Based on our extensive experience of the use of our AVM in bank lending operations, we have developed our own end to end valuation platform (EzVal) that enables users to fully manage and optimise its AVM, desktop and physical valuation decisions. The system is underpinned by our comprehensive property database and has customisable decision-rules engines, routing methodologies and valuation forms to meet our clients valuations needs.
We have developed our own extensive spatial property database which together with its proprietary address and deeds data, enables it to provide accurate, high volume property geo-coding services. Accurately understanding property location enables our clients to extract more value out of their risk and market potential analyses.
We are a provider of fast, regular, accurate mass (re)valuation services based on multiple methodologies tailored for different industries. We currently regularly update property valuations for bank capital (Basel III), provisioning and free equity calculations, insurance value updates, portfolio performance analysis and municipal valuations.
Credit risk metrics
We have developed a number of credit risk metrics for mortgage lenders which primarily focus on asset-driven drivers of Loss Given Default (LGD). These include our Risk Quality Grade (an area based mortgage risk measure), distressed sale valuations and mortgage exposure metrics. These metrics are used by banking clients to differentiate Loan to Value (LTV) and pricing of mortgage loans based on property risk.
Insurance risk metrics
Lightstone Property has sourced a number of insurance related data sources and developed unique indices and metrics to assist its insurance clients better underwrite and price its property risk exposures. These include providing residential property Replacement Cost Valuations (RCV) and providing risk indices for flooding, lightning, hail, fire, subsidence, earthquakes and crime.
- Flooding: Assigns a risk index based on the distance and altitude from a water source, with consideration for the type of water source, e.g. perennial or non-perennial.
- Lightning and Hail: Measures a property's exposure to lightning and hail damage based on the reported lightning density per square km, adjusted for altitude.
- Dolomite: Identifies whether a property is situated on ground consisting of dolomite and estimates the risk of sinkholes based on proximity to mines and other sinkholes.
- Earthquakes: Analyses whether a property is located in an earthquake-prone region based on historical tremor intensity and frequency.
- Crime: Offers a comprehensive risk index and trends for various categories of crime, such as contact crime or property related crime, based on official SAPS data which is mapped spatially.
- Proximity: Reviews the distance of the property from several key points of interest such as police stations, fire stations and airports.