EVA^TM -- Express Valuation Analysis Appraisals

These are our next generation appraisal products incorporating real estate statistics and expanded market analysis.

Charts and graphs with clear and concise explanation lead the user of the appraisal report to an understanding and feel for the current market conditions. In some cases, statistical regression analysis techniques are implemented.

In the above 2 year bar chart in this neighborhood, the supply (houses listed on the market) exceeded the demand (sales of houses) up until approximately October of 2009.  Excessive supply can create declining property values.  After that period, the supply of houses dropped below the demand.  Home inventory is clearly declining here relative to demand, a positive sign for price stabilzation and/or increases prices.

This bar chart and trend line estimates how many months it will take to sell the number of actively listed homes on the market for a given time period.  Back in April of 2008, there were so many houses on the market, that it would take 14 months to sell all of the inventory existing at that time based upon the current rate houses were selling.  That trend has declined dramatically over the past 2 years.  How many months of inventory are there in your neighborhood?

The chart above follows the number of REOs (bank owned foreclosures) sold since March 2008.  There were only 2 that sold in that month.  That number increased consistently up until October and November of 2008, when there were 12 REO sales in each of those months.  After that time period, the trend has been declining.  The purple dotted line is the statistical 12 month "moving average" for REO sales.  This considers each new month's number of REOs and averages it with each of the prior 11 months REOs, moving forward.  The moving average smoothes out the trend line for any single month's erratic number count.  Both trend lines indicate a declining trend in the number of REOs in this neighborhood.  Do you know if this is the trend in your neighborhood?

As shown in this pie chart, REO property was clearly the majority of sales at 57%.  Short sales followed in second place, while only 11% of the sales were not REO or short sales.  What's happened in your neighborhood over the past 3 months?  

In regression analysis, the appraiser studies the neighborhood for the major value components in properties, and then builds a customized "valuation model" using the statistical concept of ordinary least squares mathematics. The properly trained appraiser analyst applies this advanced tool to arrive at a value.

Appraisal Dynamics' chief appraiser, David Villanueva, CREA, has been awarded the "Collateral Valuation Specialist" certification for competency and training in real estate statistics and regression analysis.

We think EVA is a cool idea for a hot and versatile appraisal product that serves our clients' needs. Put the power of EVA to work today!

See "Services" at the top of this Web page for pricing on our appraisal products.  If you have any questions at all, click on the picture of our friendly cyber-secretary to inquire, send us a regular email, use our Preliminary Order Request below, or just call.