Integrated Asset Services, LLC® (IAS®), a leader in default management and residential collateral valuation, unveiled today its new “Conditioned Valuation Model” (CVM), a first-of-its-kind cost-effective integration of automated transparent property analytics with human observation.

CVM is uniquely positioned along the continuum of existing property valuation products between the widely-used Automated Valuation Models (AVM) and Brokers Price Opinions (BPO). At half the price of a standard BPO, the new CVM allows for more comprehensive and affordable due diligence for those business applications requiring more than an AVM but less than a BPO.

“Black Box” AVM’s failure to disclose supporting data and valuation methodologies has led to questionable and unsubstantiated property values, and until now there were few alternatives. CVM delivers a real-time, 360 degree view of a subject’s condition, the subject’s neighborhood condition, a condition-adjusted value, and market price trends.

“Traditionally, the industry has had the choice of a more expensive human-based solution or faster and riskier automated solutions. But the current mortgage industry requires these two valuation approaches interact intelligently and at the right price point,” said Dave McCarthy, CEO of Integrated Asset Services. “We’ve combined revolutionary valuation technology with objective third party property inspection services to produce what we believe to be the first humanized automated valuation for residential property at a reasonable price.”

CVM, the first entry in a new suite of IAS Integrated Valuation Solutions (IVS™), goes well beyond just pairing two reports together side by side. The valuation formula integrates accurate, transparent property data from IntelliReal, IAS’s technology partner, and provides accurate real estate intelligence supported by comparable sales, neighborhood analysis, current neighborhood sales, and active listings. These analytics are combined with a hands-on inspection performed by a third-party property inspection firm, including photos on the subject and its neighborhood condition, occupancy status, and conditions that impact value. The data resulting from the third party inspection directly influences the automated valuation estimate, solving the long standing problem of the AVM: the lack of real-time property condition information.

“The market has suffered by blind reliance on traditional AVMs. Today’s market requires transparency and innovation in the approach to valuations, including the integration of human observation,” said Ric Miles, CEO of IntelliReal. “With a 14 year track record of delivering quality valuations and services nationwide, IAS is ideally positioned to deliver this new type of integrated solution.”

The CVM is one of the many innovations recently introduced by IAS to assist the mortgage community mitigate losses, reduce risk and lower costs. The firm, which launched its monthly-reported IAS360 House Price Index last year, recently rolled out CDA Credit Due Diligence Analytics, a ground-breaking due diligence service for the mortgage industry.