With its massive number of small CRE assets, the small-cap property and loan markets compel lenders to supplement valuation activities with independent, cost-effective and automated tools to determine market values on small commercial properties.

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.

Boxwood developed VALPRO for these purposes. Available at Boxwood's subscription-based web site, SmallBalance.com, VALPRO is a robust, statistical model that provides reliable estimates of market value on primary and secondary property types in most metropolitan areas of the country.

In 2005, Boxwood developed and has since maintained the precursor model to VALPRO, an AVM operated by the commercial appraisal division of The First American Corporation. Boxwood is a distributor of both AVMs

Visit SmallBalance.com for more information about VALPRO.