Alternative Valuation Products

In an effort to streamline their processes, lenders and banks are considering different variations of appraisal valuations. This can occur when traditional appraisals aren’t serving the right specifications relative to portfolio management or due diligence. These kinds of appraisals are also often completed faster while being more cost-effective.

When Are Alternative Appraisal Valuation Products Used?

A full-service, traditional appraisal may not be the best option for:

• Portfolio management
• Risk monitoring (evaluating changes in market trends)
• Default servicing
• Home equity lending
• Due diligence (with an audit or quality control)

To meet this growing demand, AmeriMac offers alternate valuation products that come with their own advantages and disadvantages. Not all alternate valuation products will be a good fit for your business. However, the right product for the right job can serve you very well. Below are some of our many options if you’re in need of an alternate valuation product.

Automated Valuation Model (AVM)

This service combines mathematical modeling with a database of existing transactions and properties to generate a real estate valuation. AVMs compare similar property values at the same time.

Executive Value Report (EVR)

This report ranks the property against its 10 closest comparable properties and provides a suitability score. It also includes the sales history of the property and a three-year value forecast for the property and its surrounding market.

Property Condition Report (PCR)

While still being quicker and less expensive, a PCR is the closest alternative option to a full appraisal. This includes external photos and is usually attached to another report, like an AVM, an EVR, or a desktop appraisal.

Desktop Appraisal

This unique appraisal occurs without a physical inspection of the property. A licensed appraiser completes the report using the information that is available at their desk. That information is gathered from a home inspector or other research using public records.

Streamline Appraisal

For this report, a certified appraiser incorporates comparable photos, price trends for the property and its market, as well as a physical inspection of the property’s exterior provided by a home inspector.

Streamline Evaluation

To provide a value opinion, a home inspector’s physical inspection of the property is combined with a third party algorithm-driven report.

Broker Price Opinion (BPO)

An estimated value is given from a licensed real estate agent, which is then checked through AmeriMac’s automated and manual quality control processes.

Interactive Valuation Models (IVMs)

Several integrated tools are used to develop comparables and adjustments, like regression-based adjustments. Data is collected from sources such as market conditions and property characteristics over time.

Hybrid Valuations

This term can have different meanings to different clients. It typically refers to a blend of a property inspection by a home inspector or a real estate professional and the valuation knowledge of an appraiser. Hybrid valuations can also refer to an IVM combining an appraiser’s knowledge with a computed algorithm.

Tie-Outs (Review Reconciliations)

Also known as a value reconciliation, in a tie-out, the appraiser coordinates their own opinion of value with multiple valuations that exist for the same property. Oftentimes, this requires the appraiser to consider valuations like a BPO, an AVM, a traditional appraisal, and/or other kinds of valuations.

Custom

The experts at AmeriMac are also happy to develop customized alternate appraisal options and hybrid reports for your specific situation.

Choosing the Correct Alternate Valuation Product

It is imperative that you choose the best appraisal report for your business and your properties. When you’re considering the many alternate valuation options available, having a knowledgeable and communicative partner at your side makes all the difference. The experts at AmeriMac look forward to working with you, discovering your precise requirements, and delivering what you asked for on time. Contact us today for appraisal reports that are fast, accurate, and compliant.