Default Related (Collections, Pre and Post Foreclosure, REO, Short Sale, etc.) peaked around 2010-2012. We have seen a significant drop in volume of these properties as Banks, Investors, Lenders and Servicers addressed them successfully. However, they still do exist and some say they are increasing. We have a unique expertise in appraising these properties as we have extensive experience in appraising, managing, marketing, reconciling, and valuing these special assets. This perspective is based on working on thousands of these properties in various stages of default both locally and nationally over the past twenty (20) years.
These properties can have significant variances in valuations (origination, AVM, BPO, drive by appraisal, etc.). We understand that these variances generally revolve around multiple opinions regarding both the “as is” and the “as repaired” values. Generally, once these values are standardized and reconciled, these variances become significantly less and more explainable. Having a clear Scope of Work (SOW) defining the expectations of “repaired value” (mortgageable C4, C3 or C2) is the key to maximizing net sales prices while lowering marketing times. Understanding closing costs (purchase and sale), renovation budgets, and entrepreneurial incentive is the second topic that we address and detail for our Client. Clearly defined options with estimated gross and net sales prices are part of our value add service on for ALL default related appraisals. Lastly we document as much as we can via research, diligence, photos, addendum and simply knowing what to look for. We recognize and respect the risk (corporate, financial, reputational, etc) exposure for our Client. We provide detailed photos of each room and detail concerns that we observe. We use third party technology to scan and provide our Client with an ANSI compliant floorplan / sketch.
Watch our Conversation with Hal Humphries of Appraisal Buzz from December 2023
Conversation with Hal Humphries of Appraisal Buzz from December 2023
ValcoMD provides confidential, credible, independent, non-biased Default Related Appraisals.
Common questions we are asked:
What is a Default related appraisal?
A Default related appraisal can be either a Restricted Appraisal or an Unrestricted Appraisal depending on The Client and expectations. They can be full interior inspections or just a drive-by exterior Report.
What is included in the typical Default related appraisal report?
Generally we provide:
A commonly used / industry accepted Restricted or Unrestricted Appraisal Report form.
Sales Comparison Value summarized using a Comparable Sales Grid supporting the Sales Comparison Approach
Statistical Support for adjustments and comments
Cost Approach Value
Identification of the Client, Intended Users and Intended Use.
Subject front, rear, and street photos
Extensive photo addendum supporting each room noting both interior and exterior concerns
BOTH building floorplan and ANSI measurement #
Aerial location map of the subject
Street location map of the subject and comparables
Tax Assessment Record
Subject transfer history
Zoning Classification
Stating of the site and improvements
USPAP Certification
Copy of the appraiser’s license and bio/resume
Estimated repair budget if not provided
Detailed investor analysis supporting both as is and as repaired values
Reconciled Final Market Value Conclusion
Dated and signed by a Certified Residential Appraiser
How long does it take once the appraiser is hired to get the report?
Generally, we can inspect/observe the subject within one to three (1-3) business days and then provide the completed Appraisal Report to the client within two to four (2-4) business days after the inspection/observation. A report can be ordered on our website or you can contact us to arrange.