Collateral Valuation Report

[J Grant]

If a lender needs a "low cost "report, why not just order a dekstop appraisal? (and if you need to drive by the property, then a short form driveby apprasial).

Or an appraiser can create their own version of a report customized to a client's needs, one with more narrative for example, or one with regression stats as an addendum. Wintotal has hundreds of forms, and many short ones.

It sounds scary to me that a sofware program picks the comps. What is the point of that?

 

[Jo Ann Meyer Stratton]

When an appraiser is working on a CVR report correctly, the appraiser chooses which properties go into the data base, which properties to be used as comparable sales and comparable listings, then the appraiser chooses which and the amount adjustments to be made. Everything all through the report are appraiser choices. But just as the URAR is abused by some appraisers with the wrong data, comparables, adjustments, etc--the CVR can be abused also. A CVR requires just as much due diligence, research and analysis by the appraiser as any other type of appraisal report. The final opinion of market value in a CVR has to be supported by verified data, just like any other type of report.

 

[J Grant]

A CVR requires just as much due diligence, research and analysis by the appraiser as any other type of appraisal report. The final opinion of market value in a CVR has to be supported by verified data, just like any other type of report.

Then what is the advantage of them, over say a drive by or equivalent SOW apprasial report? Is there an advantage, a real reason a lender would want these report, is just a marketing thing?

 

[Fargo1]

A CVR requires just as much due diligence, research and analysis by the appraiser as any other type of appraisal report. The final opinion of market value in a CVR has to be supported by verified data, just like any other type of report.

I agree. As I understand USPAP they should also contain a full workfile for all of your research and analysis. In short, they are a full appraisal just completed on a different form. So why are people doing them so cheap. After you figure in the workload and liability they should not be any cheaper than a full 1004 appraisal. But then again, I feel the same way about a driveby. In fact, I actually charge more for a driveby than I do a 1004. For me its easier to get more reliable information faster by just walking through the house than it is to track down years old information when the property last sold and peaking through windows or asking neighbors what the house was like.

As I understand USPAP any time you put a value on something you are required to have a complete workfile with all your analysis. And you are liable for that value no matter if it was a verbal report, summary report, full narrative report of some CVR report thing. So the way I see it, there is the same work or sometimes more for the shorter forms than there is for the 1004. I don't see how a CVR would be any different. I'll pass.

 

[NorthTexValuation]

I agree. As I understand USPAP they should also contain a full workfile for all of your research and analysis. In short, they are a full appraisal just completed on a different form. So why are people doing them so cheap. After you figure in the workload and liability they should not be any cheaper than a full 1004 appraisal. But then again, I feel the same way about a driveby. In fact, I actually charge more for a driveby than I do a 1004. For me its easier to get more reliable information faster by just walking through the house than it is to track down years old information when the property last sold and peaking through windows or asking neighbors what the house was like.

As I understand USPAP any time you put a value on something you are required to have a complete workfile with all your analysis. And you are liable for that value no matter if it was a verbal report, summary report, full narrative report of some CVR report thing. So the way I see it, there is the same work or sometimes more for the shorter forms than there is for the 1004. I don't see how a CVR would be any different. I'll pass.

Absolutely agree.

Just because the "reporting" is less detailed does not mean the "development" is less detailed.