An option that's fully compliant, comprehensive, cost-effecitve.
The Clear Capital Commercial Evaluation report is a cost effective, compliant alternative to a commercial appraisal when securing loans less than $250K or valuing commercial properties to be used as collateral on business loans under $1 million.
The Commercial Evaluation provides a value rather than a price. Our data rich report includes the commercial broker’s property value and capitalization rate as well as all supporting data and commentary. Prior to delivery, every report is run through a rigorous human and automated review process to ensure the final value is supported by the story told within the report.
In some states, a broker or agent will complete the entire report. In other states, compliance is met when a broker or agent completes the inspection and an appraiser delivers the ultimate value conclusion. In either situation, Clear Capital manages the valuation process for you ensuring a commercially-trained local market expert is completing the report in full compliance of state and federal requirements.
Clear Capital’s Commercial Evaluation is offered in two formats, Sales Only and Sales & Income Approach and can be delivered on several building types, including office, retail, industrial, multi-family, hotel, vacant land and special purpose.
- Rigorous human and automated quality assurance ensures a report that is fully compliant with regulations in all 50 states, Interagency Appraisal and Evaluation Guidelines (IAG), Uniform Standards of Professional Appraisal Practices (USPAP)
- All brokers and agents are commercially trained with a minimum of two years real estate experience, have listed/sold at least five commercial properties and valued at least 10 commercial properties within the last year.
- Each commercial evaluation is reviewed by a dedicated Commercial Quality Assurance Analyst to ensure the story told within the report supports the broker or agent’s value conclusion.
- Nationwide subscriptions to CoStar ensure the most relevant comparables are considred in the report.
- The highest rated commercially trained brokers, agents and appraisers are performing Clear Capital’s Commercial Evaluations for the best boots-on-the-ground perspective.
|On all Clear Capital Commercial Evaluations, the first order of business is validating the subject address and borrower, property, loan and inspection details to make sure we’re focused on the right property and the right value assumptions.|
|The As-Is Market Value and Repaired Value are front-and-center. Sales Comparison and Income Capitalization prices are included as necessary.|
|Here’s where we dig into the details. We share relevant property information, including construction quality, site utility, zoning, assessment information and more. To give you a full understanding of the property’s positioning within its market, we provide an in-depth look at the local neighborhood, local home price trends, vacancy rates and the current and projected use of the property based on any improvements and zoning.|
|Local Sales and Listings|
|Clear Capital’s Commercial Evaluations offer insights into sales of similar properties, helping you better understand price ranges and value discrepancies. Current listings are also analyzed. In all, more than 20 data points are scrutinized within each comparable. Price adjustments for each sale are then added along with a value reconciliation. Broker comments highlight the similarities and differences between each comparable and the subject so you’re always clear on why the comparable may be superior or inferior to the commercial subject.|
|The potential cash flow for the property could affect the final value conclusion. Each report compares the subject’s contract rent (if applicable) and comparable rental incomes, and provides an opinion of market rent and potential gross income for the subject. Vacancy and operating expenses, estimated net operating income and supportable capitalization rates are then applied and figured into the final value conclusion.|
|If you need both a sales comparison value and income capitalization value, we reconcile the two and provide a value estimate based on the best approach. Broker commentary draws out the relative strengths and weaknesses of each approach, including value discrepancies, distances outside of range and REO considerations.|
|Photos of both the subject and comparables help to further identify the subject characteristics and comparable selection.|
|Clear Capital’s Commercial Evaluations take geo-location to the next level, literally, and provide up to six, super high-quality aerial images of the property at different angles to even further highlight the subject property’s location and surrounding elements.|
|In states that require an appraiser deliver the final value conclusion, Clear Capital’s Commercial Evaluation form includes the Appraiser’s Certification and additional commentary.|
The Clear Capital Commercial Evaluation offers a cost effective, compliant alternative to a commercial appraisal for:
- Securing loans less than $250K and for small balance origination
- Extensions of credit and loan modifications
- Valuing commercial properties to be used as collateral on business loans under $1 million