Overview

The large small-balance commercial loan market compels lenders to employ independent, cost-effective and automated tools to determine market values on commercial properties. In this manner, lenders can propel forward the financing of America's small business real estate owners and small property investors.

Automated valuation models (AVMs) are also particularly well-suited to the task of rapidly estimating market values on the collateral in small-balance commercial loan portfolios. That is, the AVMs are a critical tool in estimating current values, LTVs and potential loss severity for buyers and sellers of small-balance commercial portfolios.

Since 2005, Boxwood has developed and maintained a commercial automated valuation model (AVM) on behalf of its joint venture partner, First American Commercial Due Diligence Services, a commercial division of The First American Corporation. This AVM product, the Indexed Value Report or IVR, is utilized by dozens of U.S. banks and lending institutions for deriving market value estimates on small-cap properties nationwide. The applications of the model include various stages in the life cycle of the loan including originations and underwriting, loan and portfolio review, as well as portfolio sales.

Boxwood has a complementary commercial model, called VALPRO. VALPRO and the IVR are offered as components of an integrated web-based platform that presents the best available market value estimate from either model, based on the subject's location and property type.

These AVMs offer lenders an unprecedented opportunity to obtain valuations on small commercial properties anywhere, at any time and at fees that are a fraction of the cost of other valuation methods.

Contact us for more information about these small-cap commercial AVMs.