Broker Price Opinions (BPOs) can be risky due to improper record keeping, lack of consistent standards and compliance regulations that differ from state to state. These issues can leave lenders using BPOs vulnerable to scrutiny. But with the cost of a full, traditional appraisal on the rise and a growing shortage of appraisers in some markets, the need for alternative valuation methods has never been greater.
Happily for lenders, innovation over the past few years has resulted in another option – hybrid appraisal products. When a full appraisal is not required, hybrid appraisal products deliver a safer and lower cost alternative to lenders. Hybrid appraisal products such as Accurate ValueNet™ solve inherent accuracy flaws in BPOs by leveraging both property inspectors and local appraisers – resulting in greater accuracy, better compliance and quick turn times.
When choosing a hybrid appraisal product, a lender should specifically look for the following best practices:
- Appraiser-led analysis and valuation to eliminate the risk of undo influence
- Appraisers trained to deliver proper valuations on distressed assets
- USPAP-compliant
- Interior and exterior inspection options available
- Detailed and more accurate reports
- Fast turnaround time
- Cost savings comparable to, if not less than, BPOs
- Comprehensive range – available for single family, town home and condominium properties
- Nationwide coverage
Given the market climate, it’s important to select the appraisal product that provides the best combination of price, speed, accuracy and compliance for each loan type.
Accurate Group’s ValueNet suite of products meet all of the above standards and more. We customize our solutions to meet your unique needs, helping you make better decisions about how to maximize value.
Watch the ValueNet video to learn more about how a market-leading hybrid appraisal solution can help your business. Or call us at +1 866-498-9066 to discuss your specific needs.
Appraisal Tip of the Month (“TIP”) is a publication of Accurate Group, LLC and is intended to provide current insights to recipients. Tip should not be construed as legal advice or a legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only. You should not act or refrain from acting based upon any information in this TIP without seeking the appropriate legal or other professional advice on the particular facts of your situation. Accurate Group, LLC makes no warranty of any kind with respect to the subject matter included herein or the completeness or accuracy of this publication.
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