Most Appraisal Management Companies handle only residential appraisals. SAMCO Appraisal Management Company can also order and review Evaluations for Consumer Lending.
The 2010 Interagency Appraisal and Evaluation Guidelines specifically state in Section XIII that ‘An evaluation should contain sufficient information detailing the analysis, assumptions, and conclusions’. It also specifically states that an Auditors Tax (Assessment) Card, an AVM (Automated Valuation Model), and a Brokers Price Opinion (BPO) are not satisfactory for an evaluation. SAMCO’s form 69E has been specifically developed to provide an Estimate of Market Value for single family residential purposes, and conforms to the 2010 Guidelines. ‘The evaluation should, at a minimum:’
1. ‘Identify the location of the property.’ (form 69E provides)
2. ‘Provide a description of the property and its current and projected use.’ (form 69E provides)
3. ‘Provide an estimate of the property’s market value in its actual physical condition, use and zoning designation as of the effective date of the evaluation … with any limiting conditions.’ (form 69E provides)
4. ‘Describe the method(s) the institution used to confirm the property’s actual physical condition and the extent to which an inspection was performed.’ (Drive-by photo, front and street scene, form 69E provides)
5. ‘Describe the analysis that was performed and the supporting information that was used in valuing the property.’ (form 69E sales comparison approach provides)
6. ‘Indicate all sources) of information used in the analysis, as applicable, to value the property, including:
A. ‘External data sources (such as market sales databases and public tax and land records;’ (form 69E provides)
B. ‘Property-specific data (such as previous sales data for the subject property, tax assessment data, and comparable sales information);’ (form 69E provides)
C. ‘Evidence of property inspection;’ (see Photo’s below)
D. ‘Photo’s of the property;’ (form 69E provides front and street scene)
E. Description of the neighborhood; or local market conditions;’ (form 69E provides)
7. ‘Include information on the preparer when an evaluation is performed by a person, such as the name and contact information, and signature (electronic or other legally permissible signature) of the preparer.’ (Copy of Real Estate State license and form 69E certification page provided)
Evaluations are completed by a licensed real estate professional (Real Estate Salesperson/Broker, Engineer, Auctioneer, etc.) The evaluation format would provide all of the requirements listed above from the 2010 Interagency Appraisal and Evaluation Guidelines, as well as the Auditors Tax Card, and other supporting documentation, such as a prior appraisal.
Evaluations are not USPAP reviewed as they are not appraisals. A quality and professionalism score would be given for the Evaluation and the Evaluator as per requirements of the 2010 Interagency Appraisal and Evaluation Guidelines. These residential and commercial evaluation products are suited for small to moderate properties providing a simple, less expensive, and effective, regulatory compliant option for asset monitoring and/or Consumer Lending. Evaluations are not meant to take the place of an appraisal, and would be inappropriate for complex valuation assignments. Contact us to discuss your needs and how our Evaluation product can economically fit your needs, again, at no cost to you as the consumer pays our fee!