There is an array of appraisal types that are in use when a full appraisal is not necessary due to underwriting guidelines and/or cost. It is important for the real estate appraiser and other people in the housing scene to comprehend the various appraisal solutions out there. I have posted these items below.
Automatic Valuation Model - $5-$20 value range. Word is those items fell out of favor in the aftermath of the Credit Crisis. We now see signs that they are returning back into use perhaps considering that there are no sensible alternatives. The area of interest they provide is as a entry level for a quick check of ballpark values for loans and portfolio choices. If the value comes in significantly over the loan being considered the transaction is authorized for further underwriting. If it happens in too close to the crucial point, the next credible level product is requested. In portfolio choices AVMs produce a sensible degree of confidence as to the place the value lies. A similar important analysis occurs. If the value is too close to the make or bust choice point, the subsequent credible solution is ordered. Lenders and portfolio professionals save considerable income using AVMs as the triage function.
Broker Price Opinion - $75- $125 price range. One of the next level up solutions is the same BPO that has been provided for years. It has in fact taken over a considerable aspect of the appraisal marketplace. I’ve discovered estimates that 32 million BPOs have been prepared by the top three Appraisal Management Companies in 2009. Most were applied in distress properties analyses, REO preparations. Many states demand that they can only be utilized by brokers in efforts to obtain a listing.
Desk Top Appraisals – $75-$100 selling price variety. This is most likely to be a expanding marketplace product. Financial institutions, Fannie/Freddie, Fha, all appear to have renewed interest in value opinions offered by appraisers. This solution is an appraisal. We’ve seen specific valuation service suppliers announce they are moving to create a panel of appraisers throughout the country who can handle such assignments, and they claim to have clients who desire to purchase 1000’s of them per month. It is a product that has been obtainable to most appraisers for many years, but up until now there had been minor requirement and also fewer appraisers marketing this kind of solutions.
The Bradford CompCruncher , Collateral Valuation Report-$150-$225 cost range
One more class of solution that has appeared on the scene in the last six months is Bradford Technology’s CompCruncher. Bradford has been advertising and marketing the solution at conventions and in the print media. They seem to be crafting inroads in that a few hundred appraisers have signed on to present the solution.
The product is software that operates outside of the residential forms software. It receives MLS imports from the local MLS, the parameters defined by the participating appraiser, and a regression model is employed to improve the market and the subject property using the information chosen from MLS. An spectacular array of output is accessible including market tendencies evaluation, assimilation stats, eye landing graphs, and a value conclusion. It is reported that the product can be used to generate a value conclusion and reports of various levels of facts and support in under an hr of appraiser time, excluding any field inspections of course.
Zone Data Systems, Z products-$50-$225 price range
ZDS is owned and managed by appraisers, an expanding network of Partners representing the important promotes throughout the country. The basis for the Z products line is even now the most innovative and creative approach to supplying appraisal solutions in the industry today. The contending solutions are contending in marketing only, not in innovation.
AVMs, BPOs, Desk Tops, also the CompCruncher are ‘one off’ products. That is, the course of action commences when the appraisal order is obtained for a valuation of a specific property. The Z solution line is the initial revolutionary approach to appraisals in decades. It is not a one off product.
The zone appraisers invests their time and capital developing a market data base of property data and sales histories, organizing and categorizing that data into comparable market groupings, scoring each property for the various value contributors in that market, analyzing the sales in each market and using copyrighted software to assist the zone appraiser to arrive at tentative value conclusions for all properties within each market group. That data is then managed, reviewed, and updated monthly for all properties.
The result is that the zone appraiser has completed all of the research and analysis before the order is received from the client. That allows the zone appraiser to respond to the client’s needs much more rapidly than other competing products, often in less than an hour. “Near Instant Response”!
The data base that the zone appraiser creates and maintains is the heart of ZDS. Once that data base is created monthly maintenance is manageable. Entire markets are available for appraisal reports at the touch of a few buttons. The hard part, the time consuming part is done, on the shelf.
The Valytics software is designed to support the zone appraiser’s efficiency. It is also designed to allow the easy creation of report formats designed specifically for the needs of the client.
Five Z products are being created as a start: Z-Val, ZAPO (soon to be renamed), ZeskTop, 2055Z and the revolutionary PortfolioViewer. All five products can be created from a live zone.
Each report is an appraisal, prepared by a licensed appraiser, compliant with USPAP. The products are specifically targeting the competing non appraisal products…Z-Val targets AVMs, ZAPO targets BPOs, ZeskTops the Desk Tops, 2055Z the 2055 Exterior appraisal series. We also will have a Portfolio Viewer product which will provide regular updates of value on specific properties..such as a lender’s entire market portfolio.
Because our evaluation is already complete, we can beat response times and we can compete on price against each of the targeted competing products. The result is an Appraisal signed by a licensed appraiser, something that is valued higher in the market than the AVM and BPO.
For more information, call or email David Moore @ email@example.com or 951-696-7500
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