Valuation Services, BPOs, Loan Workouts
Valuation Services Performed by Appraisers
"This Menu of Valuation Services is intended to assist commercial real estate lenders, including real estate credit risk officers and managers and similar persons in understanding the range of services that can be delivered by professional real estate appraisers" (Appraisal Institute).
Valuations
Scope of work options could be:
Narrow
Ways to narrow scope may include an "update" of a previous appraisal, no inspection, or desktop, a single valuation (the primary) approach to value, providing a value range, or a value conclusion "at least $x" or "not more than $x"
Level of reporting
Very brief (Restricted Use Appraisal Report - RUAR)
A RUAR does not need to include data and analysis (i.e., does not need to "show work" of appraiser), though a lender most likely will need the RUAR report to also include comparables and discussion of the property condition to meet FIRREA minimum requirements. RUAR can be as brief as 2 pages
More detailed (Summary Appraisal Report)
A Summary report.......can also be prepared as an "Update" when there is a previous appraisal
Value type
Market value
As Is
As Stabilized
As Complete
Liquidation value
Disposition value
Fair value
Other Valuation Services:
Rental value only
Conclusion of market rent for subject
Conclusion of net income for subject
Cap/discount rate analysis
Cost analysis
Subject property inspection (no valuation)
Analysis (no specific subject property)
Rent survey (for property type, no specific subject property)
Data pull
Inspection and Public Records Search
Price Analysis
Appraisal Review