© 2011 A1 Appraisal Service Made with Xara A1 Appraisal Service Call (360) 909-1499 Collateral Valuation Report (CVR) Computer Aided Neighborhood Valuation Abstraction System (C.A.N.V.A.S.)   You can use either the CVR or the C.A.N.V.A.S. for any valuation service except for re-finance and loan origination. These report formats utilize a Regression Analysis through extraction and compiled into an easily understood report. Refinance and loan origination are governed by Fannie Mae and Freddie Mac and you need to use their approved forms for that type of appraisal work. We have found that lenders and home owners use the CVR or C.A.N.V.A.S. for their alternative valuations. Here are some suggestions for use of the CVR/C.A.N.V.A.S. report: •Bail Bondsmen •Estate work •Divorce disputes •Tax assessment challenges for the tax assessor and/or home owners •Forensic appraisals •Legal work •Home Owner Valuation •Listing Price Lenders have told us that the CVR/C.A.N.V.A.S. is a highly attractive alternative to provide more accurate and more reliable valuation with additional analytical features in the following areas: •Replacement for BPOs, particularly for HELOCs •A replacement to a URAR for portfolio loans (HELOCs, private clients, consumer finance, community banking) •Default management for any BPOs used in the process (short sales) •Alternative in the loan modification programs •Quality assurance •Portfolio Analysis •Secondary valuation in value dispute resolution and value reconciliation For Questions or a sample copy: Please Contact us. Home Appraisals: A Primer Acquiring a home is the largest financial decision some might ever consider. It doesn't matter if it's where you raise your family, an additional vacation home or an investment, the purchase of real property is a complex financial transaction that requires multiple parties to pull it all off. You're likely to be familiar with the parties taking part in the transaction. The most known entity in the exchange is the real estate agent. Then, the mortgage company provides the money needed to bankroll the deal. Ensuring all aspects of the sale are completed and that a clear title passes from the seller to the purchaser is the title company. So what party makes sure the real estate is consistent with the amount being paid?   In comes the appraiser.   We provide an unbiased estimate of what a buyer could expect to pay - or a seller receive - for a parcel of real estate, where both buyer and seller are informed parties. A professional state licensed appraiser from A1 Appraisal Service will ensure you as an interested party are informed. Appraisals start with the property inspection To ascertain the true status of the property, it's our duty to first conduct a thorough inspection. We must see aspects of the property first hand, such as the number of bedrooms and bathrooms, the location, and so on, to ensure they truly are there and are in the shape a typical buyer would expect them to be. The inspection often includes a sketch of the house, ensuring the square footage is correct and conveying the layout of the property. Most importantly, the appraiser identifies any obvious features - or defects - that would affect the value of the house. Following the inspection, an appraiser employs two or three approaches when determining the value of the property: a sales comparison, a replacement cost calculation, and an income approach when rental properties are prevalent. Cost Approach This is where the appraiser pulls information on local building costs, labor rates and other factors to ascertain how much it would cost to build a property nearly identical to the one being appraised. This figure often sets the upper limit on what a property would sell for. It's also the least used method. Paired Sales Analysis Appraisers are intimately familiar with the market area in which they appraise. We thoroughly understand the value of particular features to the homeowners of that area. Then, the appraiser looks up recent transactions in the vicinity and finds properties which are 'comparable' to the property in question. By assigning a dollar value to certain items such as upgraded appliances, extra bathrooms, an additional living area, quality of construction, lot size, we add or subtract from each comparable's sales price so that they more accurately match the features of subject. •Say, for example, the comparable property has a detached garage and the subject does not, the appraiser may deduct the value of an detached garage from the sales price of the comparable. •If the subject property has an extra half-bathroom and the comparable does not, the appraiser might add an amount to the comparable property. An opinion of what the subject could sell for can only be determined once all differences between the comps and the subject have been evaluated. This approach to value is usually given the most importance when an appraisal is for a real estate sale. Valuation Using the Income Approach A third way of valuing approach to value is sometimes used when a neighborhood has a measurable number of renter occupied properties. In this situation, the amount of income the property produces is factored in with income produced by neighboring properties to derive the current value. The Bottom Line Analyzing the data from all applicable approaches, the appraiser is then ready to state an estimated market value for the property at hand. The estimate of value on the appraisal report is not necessarily the final sales price even though it is likely the best indication of what a property could sell for in an open market. It's not uncommon for prices to be driven up or down by extenuating circumstances like the motivation or urgency of a seller or 'bidding wars'. Regardless, the appraised value is typically employed as a guideline for lenders who don't want to loan a buyer more money than they could recover in case they had to sell the property again. Here's what it all boils down to: An appraiser from A1 Appraisal Service will help you discover the most accurate property value, so you can make the most informed real estate decisions.