Collateral Valuation Report

[J Grant]

Marion's final point cannot be overemphasized. Appraisers do not get sued by lenders because a deal was closed, but they do get sued years later if a problem develops and the appraisal was questionable. As much, or more than anyone else in real estate appraisers need to take a long-term view in their business practices.

I agree, and this is what worries me about CVR and simlar "Wave of the future" shortcut data heavy /verification light "valuation solutions".

These data runs, whether regression analysis, comp cruncher, charts, whatever the method...how can you prove they were credible and supported, beyond the closed loop of the data system itself? Okay, you set your neighborhood boundaries and search back a year and feed in 6 comps or whatever the system, and out comes a value, supported by impressive charts and graphs. How do you know if the value is accurate? Because the data system fed it to you? If you start checking the value by doing a cost approach, and then a true sales comparison with real verified similar sales, by that time you have done as much work as a full appraisal, for 1/4 of the fee. And if you do not verify the sales, or otherwise test the value, and hand it in because it took an hour and $60 an hour seems great, how do you know two years from now, if some institutional investor bought all the paper of a bunch of loans and some are now underperforming or the values dropped, if they audit the valuations and you've done 300 CVR appraisals, then what? How do you defend the values if you didnt' verify the sales , and do the cost approach or anything else beyond the software data run?

Just because the software provider or AMC states the reports are USPAP compliant, how does it help you, they will not be the ones liable for the CVR appraisal, you the appraiser will be liable.

 

[DTB]

Sorry, I don't have time to do them. The compensation is too small. The risk is way too large and from court cases over the years, I am convinced that the average judge views one appraisal like all other appraisals and does not understand the concept that perhaps there are levels of quality. The judge is going to expect the top notch quality under any standard of "due diligence". I don't see how anyone can write a "tight enough" SOW and certification that allows an arm wave appraisal. And outside a few coookie cutter subdivision locations, this format is what we used to call a "windshield" appraisal....without the windshield.

I am also quite convinced that an average judge would know the difference between and Earl Scheib freshen up compared to a Chip Foose restoration.

I still have no interest in these products as they will most certainly become more commoditized than traditional appraisals have become.

 

[GulfBoating]

This looks to me like Zillow in a fancy suit.

 

[PeterPetrelli]

I'm going to chime in here...I don't post much or spend a ton of time in here but I stopped by to see what others were experiencing with the CVR. I did training in March or April. I thought the trainers were very poorly equipped. They may have an understanding of how the software works but NONE of them were appraisers so real application was minimal. I got a decent direction on how the software operates but I really had to spend a lot of time with it before I felt comfortable with it...well...it's anything but comfortable but I think you get the idea. About a month after I completed training I got a call from an AMC that orders for US Bank. The orders trickled in at 1-2 per week (if that) for another month or so. The first few reports I did took me about 4 hours each. Not just because I was familiarizing myself with the software and regression model but also because it is buggy as hell and causes so much extra work. You are probably wondering "why would he even do these reports?' Well, it's simple, I needed money. I was literally DEAD the first part of this year and I had to do something. I saw the opportunity and took it and it has paid off for me (in the short term). At any rate, here are my biggest problems. You have to import MLS data from listings...which of course are generated by RE agents. I don't know about your area but around here, they are a bunch of IDIOTS. I rarely meet a competent RE agent. That being said, they rarely fill out their listings with correct data and A LOT of times none at all. Well how the hell is the software supposed to do an analysis with inaccurate/incomplete data? 80-90% of the time the regression value is way off. I always add a disclaimer because I have no faith in it...even when it is close. The software was designed to be used to pick comparables and listings independently of the MLS. Well, you can't do that when the data is inaccurate. So you must use the MLS to find comps. To be honest, I think the idea of the software itself is ok...the biggest problem is external for which it has no solution. What it really needs is the ability to import tax records to correct false or missing lot sizes, GLA, finished basement area, year built, etc. Then it would work SO much better. I've gotten to the point to where it takes me ABOUT 1.5 hrs to do one report. They are all different because you just never know how crappy the data is going to be and what kind of bugs you're going to have to deal with. Also, it has no ability to save responses for certain cells. For instance the client...I only have one for this type of report so it's the same EVERY single time. But I have to type out their name and address EVERY time. It also deletes info, adds info and adds or subtracts adjustments that you never directed it to. The amount of resubmissions I've had with these things just because the software SUCKS is insane. And I'm told that I am one of the better ones! lol They also tell me that everyone that uses the software has given it a resounding F-... That tells ya somethin'. The thing that REALLY ****es me off is that I have to pay $25 just to use their crap @$$ software. I could MAYBE see them charging that if the software was pretty much perfect but it probably shouldn't even be out of development yet (just my opinion).

All in all, I hate these reports and the software but at the same time, I am making decent side money doing them. I am one of very few in my area doing them (for obvious reasons now) so I get orders constantly. More than I really would like but I'm not going to turn down the money....it's been a bad enough year. I hate the fact that I have to do these but I'd kinda like to keep my house and food in my stomach. It's still more money per hour than I would make at a regular job. Oh, and for them to say that they have people making $400 an hour!?!?!?!?! Total BS. There is no way. The fastest I've ever done one of these reports is about an hour...just on the report itself. I still had to drive by the property. I really can't ever see anyone doing an adequate job in less time than that...and that is BEST case scenario. It's a total lie that the average time to complete the report is 45 to 60 mins. Maybe if you didn't drive by and completely omitted all commentary like they did in the training. There are simple things they could do to make the software save time but no...I have to shell out $25 for the privilege of ripping my hair out every time I use it.

That's about it I guess. Maybe this turned out to be more of me venting than a review but my advice is, if you don't have to do them, STAY AWAY!

Also, it is true that US Bank is ordering A TON of these.

One last rant then I'll retreat back into my cave. Make no mistake, this software is all about BT. They aren't trying to help us out. I don't have any problem with a company making money but don't give me all the BS about how it's so great for appraisers and they're doing it for us... It's all about another way to screw us out of money. Proven by the fact that they are charging an OUTRAGEOUS fee considering the software doesn't even work properly.

....maybe I should be more thankful but it's hard when I have to spend more time for less money and take it up the tailpipe from BT in the process...

SCREW YOU BRADFORD

That's it...

 

[Jo Ann Meyer Stratton]

I took and finally passed the CVR training. Took it to find out what it is and would in work in my area. It does work here--however AppraisalWorld set it up for using my personal data base that I have created in Day One and has all sales and offerings for sale since 1996. My area is about 50% FSBOs and the MLS is inefficient and has lots of errors. That is why I choose my data base to be used instead of MLS. Have not received a single order, which does not surprise me. For one thing US Bank is not active in my area. It is a tool--that could be an asset in specific locations and specific times. I don't regret the expense and time that I took to become familiar with the program. Just going through that process has helped me in other ways and a better understanding of computer issues.

 

[TJQuate]

I took the course and loved it. I understand it and would be happy to do them. However, I was really stupid. I did my due dilligence after I wrote the check for $500. I'm not going to be judemental here, but offer a suggestion... before you buy, call the folks in your City how are on the list as approved Specialist. Ask them how long they've been approved and how many orders they have received.

 

[Jo Ann Meyer Stratton]

To Peter P--what I did after I completed my first local CVR for the seminar is I created and saved responses that I would use frequently or in every report in a Word Perfect document. Then I could copy and paste to the CVR. For examples, there are specific limiting conditions that I wanted in every report, statements regarding my designations (required by NAIFA, voluntary for the AI, information about my county out in the middle of the desert, etc, etc. Once I had those typical comments in Word it was quick and easy to copy and paste. Sentences and short paragraphs can be saved within the CVR program. I still haven't received any orders and don't expect to--but still pleased with the seminar information, it has been usefull in non CVR processes.

 

[Risky Business]

I'm not a fan of CVR's yet... But the class here in Nevada is good towards 16 hrs (not sure exactly how many hours) of CE. That's not bad. New product, Knock out some hours. Sounds like a win win to me.

 

[brett spaulding]

I have looked into this and it seems to be the way the residential work is trending. I am all for new products to add to my business offerings to meet my clients needs and will (probably) add this in 2012. I wish the "old days" were back, but, its past time to put them in the rear view and move on. Bradford is trying to fulfill a demand from clients with its product and, I believe, are doing so successfully.

 

[KEN SMITH]

Does US Bank order the CVR directly from the appraiser or does it order thru a AMC? If they order thru a AMC you appraisers will be doing them for $175 less 50% to the AMC less $25.00 to Bradford. Looks like $65 to $70 per report. Going to take a long time to get the $500 training fee back