Beyond the conventional appraisal: Clear Capital’s alternative valuations | Clear Capital | Blog

Beyond the conventional appraisal: Clear Capital’s alternative valuations

By November 26, 2019 No Comments
Beyond the conventional appraisal Clear Capital alternative valuations

Our range of alternative valuations include USPAP- and IAEG-compliant evaluations, saving time and money while maintaining confidence and integrity


3 minute read


As I wrote in my previous post, financial institutions can now take advantage of a wider range of valuation solutions due to the recent appraisal requirement threshold increase announced late September by the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC). The rule exempts residential real estate transactions of $400,000 or less from appraisal requirements, but still requires institutions to obtain an evaluation. (For more on evaluations, including differing agency standards, check out my previous post.)

Financial institutions have the opportunity to look beyond the conventional appraisal for time-saving and cost-effective alternative valuations. Clear Capital offers a dynamic range of valuation solutions — many of which are USPAP- and IAEG-compliant evaluations — to help financial institutions make confident lending decisions.


Property Condition Inspection (PCI)

PCIs are data-rich reports performed by local residential real estate professionals. They deliver clear, risk summary reports while visually highlighting factors that may influence a property’s marketability. Depending on unique requirements, PCIs can be tailored to include zoning information, actionable repair addendums, and aerial and satellite photos.

Cost: $

Use case:
For lower-risk situations, the rapid turnaround time and inspection by a real estate professional with geo-competency make a PCI an excellent solution for quick lending decisions within home equity, loan servicing, investing, and portfolio assessment.



Put simply, an automated valuation model (AVM) is a computer algorithm that produces an estimate of a property’s value without human assistance. By using machine learning, nearly 20 years of valuation expertise, and a robust set of nationwide property data, ClearAVM outshines its competitors to provide instant and highly-precise estimates of value.

Cost: $

Use case:
AVMs are a time-efficient and cost-effective solution for lower-risk properties within home equity lending, portfolio valuation, and pre-valuation decisions.


ClearAVM + PCI

An AVM plus a property condition inspection combines a highly-accurate, lending-grade automated valuation model with an interior or exterior property inspection.

Cost: $$

Use case:
For quick updates and confirmation of property conditions and value, an AVM report that has insight to market conditions plus a property condition inspection is a low-cost appraisal alternative. It’s ideal for lower-risk situations within home equity lending, servicing, and portfolio assessments.


Broker Price Opinion (BPO)

BPOs are data- and image-rich reports that provide a clear understanding of the subject property. They’re performed by either a licensed real estate agent, broker, or appraiser who visits the property. BPOs are excellent for making confident investment decisions.

Cost: $$

Use case:
When selling non-performing assets, BPOs give financial institutions key insights about marketability. BPOs are also highly effective solutions for servicing, origination, and investing decisions.


Residential Evaluations

Residential evaluations provide a boots-on-the-ground perspective from a highly-rated real estate professional with geo-competency, including three layers of quality assurance. Clear Capital residential evaluations are IAEG-compliant and include zoning and its data sources, current and projected use, inspection date, market conditions, data source for listing and sale history, data source for comparables, and a broker e-signature.

Cost: $$

Use case:
Residential evaluations are appropriate for loan servicers and capital markets participants needing a little extra lending flexibility and a whole lot of value for less money, while meeting IAEG guidelines for evaluations. Useful for HELOCs, loan modifications, and originations.


ClearVal Hybrid Appraisal

ClearVal is an innovative hybrid appraisal that’s USPAP- and IAEG-compliant. It combines a boots-on-the-ground inspection with a local, appraiser-completed desktop valuation. An exterior and/or interior field inspection is performed by a licensed real estate broker or agent, and a geo-competent appraiser completes an analysis and concludes the value.

Cost: $$$

Use case:
ClearVal presents a time-saving and cost-effective solution that is best suited for moderate-risk properties within home equity lending, portfolio valuation, and underwriting and risk management.


Conventional Appraisal

Conventional appraisals are in-depth, high-touch valuations that are carefully performed by certified and licensed appraisers. They follow industry standard guidelines to provide full confidence when making lending decisions.

Cost: $$$$

Use case:
Because appraisals are highly-compliant, comprehensive reports, they are an optimal choice for higher-risk lending and investment situations.


Modern Appraisal Program

In an effort to upgrade the industry’s collateral valuation manufacturing process, the Modern Appraisal Program is a time-efficient solution that maintains robust risk control standards. First, a certified property data collector (PDC) gathers a large amount of information on the property using ClearInspect, Clear Capital’s proprietary mobile app. Next, a desktop appraisal is conducted by Clear Capital’s specialized appraiser panel.

Cost: $$$

Use case:
The modern appraisal goes through multiple quality assurance checks, and its quick turnaround time makes it a superior appraisal alternative for moderate- to higher-risk lending circumstances.


With the recent threshold increase, financial institutions have several appraisal alternatives to choose from. Although the industry continues to dynamically change, looking beyond the conventional appraisal gives financial institutions a chance to save significantly more time and money while maintaining a high level of robustness and accuracy in every valuation situation. Financial institutions should ensure their valuation provider keeps up with industry and regulatory changes and is able to provide seamless, continued service.

Roselle Caballes

Author Roselle Caballes

Roselle Caballes is the sales enablement specialist at Clear Capital.

More posts by Roselle Caballes