Data & Methods

Boxwood utilizes advanced statistical techniques and large repositories of sales data to develop the market value estimates behind the commercial AVMs offered by Boxwood and First American Commercial Due Diligence Services.

Boxwood manages a database of roughly 15 million small commercial properties nationwide and catalogs over 200,000 sales annually inclusive of the primary and secondary property types typically financed by commercial lenders. Given this extensive inventory of properties and transactions, coverage of the AVMs extends to the majority of the country's primary, secondary and tertiary metropolitan areas. The property data is updated on a weekly basis and is cycled into updates of the AVMs on a quarterly basis.

The IVR from First American Commercial Due Diligence Services is an indexed-based model that systematically analyzes the relationship of property tax assessments and sale prices at the county level. In addition to geography, additional modeling factors taken into consideration include the property type and sale price tiers.

VALPRO's market determinations are generated by algorithms that harness a larger collection of market and property information such as sales trends at the neighborhood level, building characteristics as well as property type, tax assessment and sales prices among other factors.

Both the IVR and VALPRO feature a "confidence score" associated with the AVM value that provides guidance to lenders as to the reliability of the market value estimate. Confidence scores are a routine component of residential AVMs.

The accuracy and reliability of these commercial AVMs are tested on an annual basis by an independent consultant. Copies of the consultant's report are available to clients upon request.