- Mar 08, 2012
By Keat Foong, Executive Editor
Truckee, Calif.—As a supplier of real estate asset valuation and risk assessment services, Clear Capital notices changes in the way its clients—which includes large U.S. banks, investment firms and other financial organizations‑are approaching the real estate markets.
A few years ago, the collateral value alone may have been a sufficient consideration for funding a loan. Not any more. Today, more lenders want valuations for a myriad of situations, notes David DeMello, executive vice president and chief appraiser of Clear Capital. For example, the lender may desire to have a projection of the asset price if they have to sell in 30 days, or if they have to sell the asset as an REO.
“Lenders today consider it critically important to underwrite not only the subject property, but also the market in which the property is located,” adds DeMello.
According to DeMello, there are comps that were not in past years used that are employed today. Clients will ask how much REO are in the market, and what is the number of properties sold for fair value versus as REO within a one-mile radius of the subject property. Indeed, many appraisals today include an REO addendum, he notes. “They will ask, ‘what happens to the distressed properties in the market and how will they influence my property?’” says DeMello.
In response to market trends, Clear Capital is providing a greater range of valuations services to its clients who today are needing a broader suite of products to make their lending or investment decisions. The company furnishes valuation data and solutions to its clients. Its products include appraisals, broker-price opinions, property condition inspections, value reconcilations and home data indices. The company has 325 full-time employees, including licensed and certified appraisers, and a network of 40,000 field experts.
In the latest development, Clear Capital launched its next-generation Commercial Broker Price Opinion (BPO) and Commercial Evaluation products. The company said the Commercial BPO can “serve as an alternative to traditional commercial appraisals when a high quality, fast and clear opinoin of selling price is needed on a commercial property.” The Evaluation product was developed to provide accurate values of commercial property when it is being used as collateral for business loans of under $1 million in certain states.
Clear Capital is staying nimble despite its growth as one of the best-rated valuation companies. Despite its long client list today, the company still takes a small-company approach to business by viewing every assignment as though it was the company’s only one, says Brian Wick, vice president of marketing. The company, Wick says, is dedicated its customers’ long-term success.