Selecting the Right Valuation Service

Today, there are many valuation services available to financial institutions for valuing real property. These typically include appraisals, evaluations, desktop appraisals, automated valuation models (AVMs), broker price opinions (BPOs), comparative market analysis (CMA) and more. It is not always clear which valuation service is appropriate for a given transaction. 

As a lending professional, you may feel overwhelmed by the variety of valuation services/products available and deciding which product or service is right for the specific transaction. 

The use of acronyms and the use of different monikers for the same valuation service produces more confusion. It may at first seem complicated, but once you understand the benefits and weaknesses of each valuation service, it is possible to create a collateral valuation policy that allows flexibility in using a variety of valuation services while effectively mitigating valuation risk. 

This course dives into the strengths and weaknesses of each type of valuation service, the applicable Federal regulations and guidelines, and other factors to consider in selecting the right valuation service.