New Way to Value: Collarteral Valuation Report??? (CVR)

By
Real Estate Appraiser with Highlands Ranch Appraisals, LLC CR100001997
http://actvra.in/dYn

Ok follow appraisers, has anyone tried the new Collateral Valuation Report (CVR) or also known as comp Cruncher. Well I have and it is great I really feel like I am a professional Appraiser with this and have all the verification and analysis at my figure tips to be the most effective in my work. It is based off of statistics and uses regression analysis. The results are the best I have ever seen in an appraisal.

Lenders view the CVR as a highly attractive alternative to replace BPOs. They are more accurate, more reliable and have a lot of analytical features. These CVRs are good for portfolio loans, default management, alternative loan modification programs.

This report can be done with in hours as most of the data is uploaded through the software. (just like when you pull your comps before the inspection, and market conditions). Yes I said within hours. I got it down to about 3 hours total (plus that includes a drive-by). I only do them for ones that are near me and ones with enough data to be able to pull a good regression analysis.

The way it is laid out with the satellite petometry views of each side of the subject, the way all the data is pulled from your MLS and imported in, and all the graphs that are made for you to view. You end up with a regression value, and sales comparison value and a listing value. Three different values sso then you cane support your opinion based off of those results. The regression supports all adjustments and helps support the sales comparison. Of course the listings are there more for a future outlook. The report looks like it is done by the most professional expects in the industry.

When it comes down to it you make a lot more per hour than an appraisal and it is more enjoyable to do!!! As you know appraisal reports are requiring more and more and more. These reports do the best job to get the job done more efficiently then before.

This is the new thing don't wait and miss out. As U.S Bank is now ordering them. Need a sample report I will send you one.

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Comments 14 New Comment

Rainer
20,992
Mike Lay
Appraisal House Texas

Bradford must be doing a big marketing push, I have been getting "rah-rah" emails for the last 3 weeks from them and there seems to be a lot of posts similar to this on the message boards lately.   No offense Danell, I am glad you are getting these orders and doing well with them.

I was one of the first to sign up, paid for the class, and was as excited about it as Danell seems to be.  But then...nothing.  In over two years I have never received an order, despite being in a large metro area.  I found out later that the few banks that were using it were working through AMC's to distribute them, and/or large appraisal companies (Forsythe) that of course use their own appraisers if possible. 
Nothing wrong with all that, it's just business, but I keep pretty good tabs on the CVR and from what I gather it has not been a great substitute to BPO's due to the higher cost -- which are off substantially from what was originally estimated.  When I was taking the classes there was talk of a $175 or $200 fee, less $25 to Bradford, for what would be 1-2 hours of work at your office.  But what most appraisers who are doing them are saying, at least that I have heard from, are that the lenders want drive-by's instead of desk-tops, and they are getting a net of around $100 for 3-4 hours work. 
Apparently the fees are better and the work more available in less populated areas, but of course the more rural it is the less relevant the data is, and the less comfortable I would be with the conclusions kicked out by the software.
I'm not railing on it, I think it is a neat program and has value to a lender, but in many cases is not substantially better than a BPO, and in ALL cases it is not as good as a full appraisal.  But there is certainly a market for it, one that is growing, and for those of you doing the CVR I wish you plenty of success with it.

July 24, 2011 07:11 PM
Rainmaker
90,211
Craig Chapman
The Value Guy
Call Realty / Access Appraisals

I second what Mike said about being in an area where there is a Forsyth office.  They get a good percentage of all the CVR orders, by contract agreement, from what I'm told. Since they are a split fee shop with maybe less experienced appraisers, I'm not sure that qualifies as putting forth a great effort in hiring the best, most qualified appraiser as suggested by Dodd Frank. The AMCs who are listed by Bradford as the ones involved in ordering the CVRs are very difficult to get on with.  I think the order volume of CVRs is low, hopfully it will increase.  I think it is a good product, typically better than most BPOs & should be used a lot more.

July 26, 2011 06:46 PM
Rainer
30,316
Danell Estrada
Highlands Ranch Appraisals, LLC

Yes the lenders usually want a drive-by, but only of the subject property. I am getting a $150 for these and only stay close to my office so it is worth it. They take 2-3 Hours. I would not take anything less than that. If they wanted an inspection it would be the same as a full appraisal as you all know they always want more and more from us appraisers.

I would like to see a BPO that tops the CVR fromBradfordas I have not seen one better. Does anyone have one to show? I truly think that even with other items out there doing the same thing asBradford.Bradford's CVR tops them all. A good comparison on them would be a fun project for sure.

July 27, 2011 02:45 AM
Rainer
20,992
Mike Lay
Appraisal House Texas

Craig, to your point about less experienced appraisers: Out of curiosity I looked up the local appraiser for the company we were discussing here in Austin, and according to the ASC website it is someone who moved here (or at least got her Texas license) last November after moving from Virginia. 
Now, she may be a wonderful appraiser with a ton of experience, and maybe she grew up here and knows the area very well.  I don't know, but at the end of the day do you want someone with potentially only several months experience living in the town they are appraising in?  Do you really get a feel for the real estate market -- or the city in general -- in a few months? 
Again, I'm not trying to offend anyone, since we all had to start somewhere, I'm just making the point that at least in this case, the "local knowledge" that some companies proclaim to have is a bit limited.

Danell, I don't think BPO's are better than CVR's, I just meant that most investors/lenders would prefer an "average" BPO for $60 over a $150 "better than average" CVR.  I hate BPO's, I have been handed a few on occasion ("well, this is what my realtor said it was worth!").  They just make me shake my head and wonder if the realtor who came up with the "price per square foot" sales pitch made any money from it.  But that is a whole different rant... 

July 27, 2011 11:45 PM
Rainmaker
90,211
Craig Chapman
The Value Guy
Call Realty / Access Appraisals

I have heard that the lenders typically pay more like $100 or more for a BPO.  The REALTOR gets far less & the AMC that orders it gets the rest. Does that sound familiar to any of us? 

July 29, 2011 11:17 AM
Rainer
30,316

Danell Estrada

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