A Proactive Approach to Home Valuation

1
A Proactive Approachto Home Valuation

• David BarnesSr. Relationship ManagerDavidBarnes_at_
  GotAppraisals.com 925.965.0378

Ultimate Mortgage Expo Atlantic City, N. J. June,
2013
2
Todays Topics

• Benefits of understanding potential value
  up-front
• How to leverage that knowledge
• Structuring the deal around potential value
• Positioning yourself as the expert
• Realtor-based business

3
Appraisal Issues

• Appraisals ruining your deals
• Unrealistic value expectations
• Price adjustments due to LTV/CLTV

4
Understanding Potential Value

• What does the borrower think the home is worth
  (or purchase price)?
• What do you need the home to be worth to make
  your deal?
• Is there anything going on with the subject
  property that could impact its value or your loan
  (i.e. deferred maintenance, permit issues, unique
  situations, etc.)?

5
Why Let Value Kill Your Deal?

• Have a good idea of potential value while
  packaging the deal
• You need something more accurate than a BPO or an
  AVM and that is cost effective
• Knowledge is POWER!

6
Leverage Your Knowledge

• Educating your client
• Setting realistic expectations for youand your
  client
• You are the mortgage expert

7
Structuring The Deal

• Best and worst case scenario
• Will the deal still work?
• Cash to close
• Mortgage insurance
• Potential for a rate increase due to LTV/CLTV

8
You ARE The Mortgage Expert

• Creating long-term relationships and
  referral-based business
• Stand above ALL of your competition

9
Realtor-Based Business

• Knowing up-front if there will be potential value
  issues with purchase transactions
• Make your agent look great!
• If there is an issue, get out before
  contingencies are up.

10
Now Introducing!

11
The interactive AVM, compared

• Standard AVM
• Low cost, automated estimate of market value
• Automation is a shortcoming
• GotVal and GotVal Plus interactive AVMs
• Start with an AVM
• Add insight from trained staff members
• More accuracy, without losing speed or economy

12
Interactive AVM

• Geo-statistical formulas and analytics
• Multiple data sources
• Confidence scoring, plus additional data
• Trained staff intervention to adjust subject and
  comp criteria
• Elimination of sales data that is not pertinent

Trained staff is not necessarily an appraiser.
13
Interactive AVM
14
Interactive AVM
15
Interactive AVM

• All of the benefits of GotVal, AND
• Property inspection report
• Exterior Photos

16
Interactive AVM
17
Interactive AVM
18
Interactive AVM
19
Interactive AVM
20
The Professional Abbreviated Report (PAR)

• Completed in 24-48 hours
• Done by local certified appraiser
• Direct knowledge of the subject neighborhood.
• Order full appraisal within 10 days
• Get 50 off
• Will be completed by the same appraiser.

21
The PAR Advantage

• Fast
• Always done by a local appraiser
• Always USPAP-compliant
• Save money on follow-up appraisal
• Full-time support staff to answer questions
• No conflict of interest with broker agenda
• Photos of subject and comps available
• High accuracy

22
PAR
23
PAR
24
Thank You!
By doing a little homework up front in properly
qualifying your collateral, you can save yourself
and your borrower a lot of frustration, time and
money. You will have better quality loan
packages and much happier clients. If you have
any questions contact davidbarnes_at_gotappraisals.c
om 925.965.0378