Valuations provide an important component of appraisals for use in qualifying real estate transactions. The valuation process applies professional judgement to the characteristics of the property being valued. Rather than simply automating the old processes of the conventional valuation environment, REASA experts have used the elements of professional property assessment judgement and the best data to develop a superior AVM. REASA experts have combined established appraisal principals with elements of statistical and econometric modeling and applied geographic/economic data to produce the very best product for use by the professional and layman, alike. A description of the completeness and accuracy of the property data that was available for the valuation accompanies each valuation.

The REASA system leaps ahead of the conventional valuation environment to take advantage of Opportunities Afforded by Technology, and it does it expertly.

Modern Methods

Automated Real Estate Valuation Models (AVMs) bring business, industry and technological experience together to meet the needs of the private sector markets for time-efficient, cost-effective and professionally defensible valuations of real property. REASA simply applies the best analysis and modeling to the process, and develops superior products.

Economy

The cost of a property appraisal is approximately $300-$400. Even volume purchasing of appraisals to determine property values are experiencing costs of over $150 per appraisal for consumer loans. REASA can provide a consumer evaluation for less than $20.00, and detailed evaluation (with significant property characteristics from the public record) for only $24.95. Commercial bulk prices are even lower. REASA products are not only superior, but they are priced well below others.

Market Coverage

REASA serves every type of user who may be interested in the value of residential real estate.

Consumers represent a significant market. They want to verify the accuracy of their property tax assessment, they can avoid unnecessary mortgage insurance payments, and they need to know the real value of a property as they consider purchase, sale, home equity loans or refinancing. They want reliable results for the least cost.

Commercial firms in finance, real estate and development make daily use of property valuations. They rely on them to support business decisions and to meet regulatory requirements. They must have the accuracy, convenience and economy that only high quality AVM services can deliver.

The banking industry alone represents a major market. For a bank that has all second mortgage and equity property loan appraisals performed by an independent appraiser, converting to complete use of REASA will result in savings of over 90% on current appraisal costs.

Quality

REASA provides an exceptional product. It was developed and is being managed by the most knowledgeable people in the field. It employs econometric modeling against the population of variables (property characteristics) associated most closely with predicting the value of any given property. It has unique features that make its property valuation calculations superior in accuracy, responsiveness and economy. It is supported with rational backup services, including rating the data upon which the evaluation is based.

This unique REASA system has demonstrated its superiority to other products in the market by undergoing due diligence testing conducted by major U.S. Banks. It is being applied in the public sector in the United States and abroad. REASA has outperformed all competition in every instance where it was tested against other models.

LOCATION, LOCATION, LOCATION

Real Estate value is primarily about the location of the property. All professional appraisal societies consider location the most important single contributor to property value.

REASA is proud to apply the only Location Index for individual residential properties available from any source in the real estate industry.

REASA’s Location Index is the relative percentage of location value within the geo-political area of valued properties, for example, Fairfax County, VA. This Location Index is generated by REASA’s econometric model based solely on the analysis of thousands of sold properties.

Therefore, REASA’s Location Index is the first empirically supported adjustment for location that is without any bias or discrimination.

The Location Index for Fairfax County's 8,497 sold properties ranges from 39% to 442% with a median of 101%.

Market history can be analyzed and replicated in a computer model. Simple analysis applies historical price per square foot sales data from small, localized samples to model the influence of "comparable" individual properties.

This approach fails to take into consideration all of the true location influences that actually drive the current sales market.

REASA goes beyond this to replicate market operations by modeling a broad, multi-influence economic Response Surface. This produces the REASA Location Index.

If two years of sales in Fairfax County, VA are mapped by price per square foot, the result looks like this:

When the same data is mapped with REASA's comprehensive Location Adjustment system, the following Response Surface map is produced:

This true set of economic influences for an entire jurisdiction allows the REASA model to operate as the actual real estate market does. Because of this, the Location Index alone makes using REASA evaluations a good investment.

Why REASA? From a lender's perspective:

• Valuations are more Accurate, are Supportable, and are Defensible
• Mortgage application processing is more convenient to both borrowers and lenders.
• Since Application Processing Time is Greatly Reduced:
  • Lender Production is Increased, and
  • Underwriting Costs are Saved
• The lender has a Complement to Credit Scoring
• Quality Control is Greatly Improved

• We provide property values over the Internet on a per-transaction or subscription basis.
• Property values can be accompanied by evaluation support documentation.
• We provide the Quality Control for our Valuation Reports, and we rate the Data Quality for you.
• Consulting Services are available to back clients with special requirements.

• Review of purchased mortgages
• Review of real estate portfolios purchased by financial institutions
• Statistically based quality reports for mortgages sold to the secondary markets
• Yearly mortgage portfolio audits
• Support for financial institution's Community Reinvestment Act (CRA) reports
• Statistical analysis for defense of lending practices
• Portfolio review and value updates for current loan-to-value ratios