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Posts Tagged ‘Absorption’

[Three Cents Worth #131] Market Loss is Your Gain

November 12, 2009 | 11:18 pm | | Charts |

It’s time to share my Three Cents Worth on Curbed, at the intersection of neighborhood and real estate.

Three Cents Worth: Market Loss is Your Gain

I went back to 2001 by quarter and plotted the year-over-year gain or loss in inventory compared to the discount a property sells from its list price. The gain or loss is calculated by taking the difference between listings and sales in one period and comparing the difference to the amount in the same period the year before. It’s another way to measure absorption. Listing discount reflects the spread between the list price at the time of contract and the contract price itself.


[Click to expand and read full post on Curbed]

Check out previous Three Cents Worth posts.


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[Sandstorm] 3Q 2009 Hamptons/North Fork Market Overview Available For Download

October 22, 2009 | 1:01 am | | Reports |

The 3Q 2009 Hamptons/North Fork Market Overview that I author for Prudential Douglas Elliman was released today.

Other reports we prepare can be found here.

Charts that contain the 3Q 2009 data are now available.

An excerpt

…Listing inventory expanded 21.5% to 2,419 units from 1,991 units in the prior year quarter and 5.8% higher than the 2,286 units in the prior quarter. The jump in the number of sales over the summer prompted many sellers to return their listings to the market. There were 459 sales in the third quarter, 49.5% more than the 307 sales of the prior quarter and 29.3% more than the 355 sales in the prior year quarter. The number of sales was the highest quarterly total since the second quarter of 2008, when there were 541 sales, but was 56.4% below the record high water mark of 1,052 sales in the second quarter of 2004. Monthly absorption, the number of months it would take to sell existing inventory at the current pace of sales, peaked in the first quarter of 2009 at 34.2 months. The absorption rate fell in the second quarter to 22.3 months and fell in the third quarter to 15.8 months or roughly half the rate of peak, indicating that the pace of sales activity has been faster than new inventory being added to the market…

Download 3Q 2009 Hamptons/North Fork Market Overview


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[Vortex] Palumbo on USPAP: It’s OK To Be Bored…Just Pay A Little Attention!

September 13, 2009 | 8:39 pm | |

palumbo-on-uspap

Guest Appraiser Columnist:
Joe Palumbo, SRA

Palumbo On USPAP is written by a long time appraisal colleague and friend who is also an Appraisal Qualifications Board (AQB) certified instructor and a user of appraisal services. Joe is well-versed on the ever changing landscape of the Uniform Standards of Professional Appraisal Practice [USPAP] and I am fortunate to have his contributions here. View his earlier handiwork on Soapbox and his recent interview on The Housing Helix.
…Jonathan Miller

I received a call the other day from an appraiser who had recently completed an appraisal for my organization. The file had gone through “review” and there were no “hitches”. The appraiser was calling only to ask me some questions about my “suggestions” regarding some of the redundant and unnecessary commentary in the report, including some technically incorrect labeling. He was very polite in seeking some guidance, and we chatted for 25 minutes or so. I said “if time is money, I think I can save you some”. He was eager to engage me in this discussion, probably because it had nothing to do with the appraisal he submitted but more because he said he was always looking to streamline the process to be more productive. He recognized my name from both working with us in the past as well as from an article I had written this year for an industry magazine so he was aware of the potential for me to quote USPAP which, of course, I will ONLY do if absolutely necessary. Anyway, I started to tell him about the aggregate changes that have taken place over the several years and some of the retired terms and concepts. His reply was “gee I get so bored in that USPAP class it is hard to absorb anything”. “Yes”. I said, “I understand”. “ Imagine how difficult it is for me to present what has a reputation for being boring”. “too many changes” he said…”I cannot keep up”. Again I said, “I understand”.

Imagine what I go through…. It’s mandatory for me to understand that stuff; being bored is not an option when you are a speaker or instructor ”. “Let me give you some tips” I said: “ USPAP changes every two years and those changes will always effective occur at the beginning (January) of the third year”. “The reason for the changes are because appraisers and users of appraisal services ask questions, raise new issues, revisit old issues under new circumstances or because the Standards Board observes something as not applicable, no longer meaningful or something new as pertinent and topical”. USPAP is a working document an evolutionary doctrine that will change with the needs of the business. All you need to do is pick up a few past issues and look inside. Hindsight will really be 20/20 because looking backwards will reveal what was needed most of the time. Along the way the ASB will provide public exposure drafts (with specific rationale) and obtain public comment. Once changes are decided the summary of changes will be made available a few months prior to implementation and when the new edition is published there are a few pages dedicated to what the changes are. Other professions have to deal with similar issues as it relates to CE, changes in laws or regulations. While too much change can be cited as confusing and time consuming it is arguable that not changing at all can be considered detrimental. One cannot argue that today’s issues are different than those from five or ten years ago. Change is a scary word for most people and that is part of the challenge.

Let’s be fair here, being bored in the classroom is not exclusive to USPAP. I took some pretty boring classes myself during the past 43 years: college courses, appraisal courses, on-line courses. “Boring” can also be an instructor attribute and one can suffer through some tough classes even if the material commends excitement. I remember my Economics class at the University of Maryland… 8 AM or something…with 100 or so students. Boring stuff for an 18 year old but I had a great animated instructor who did his best to make the supply curve interesting. I am glad he did because despite my boredom, I did learn something…and I did not have to sit in the front row and take 10 pages of notes each class. I also had history teacher in high school, who despite being boring herself, DID manage to successfully explain the nuts and bolts of the Confederacy. What’s not boring? It really boils down what you absorb and IF you want to pay attention. In today’s world we go to the movies with IPODS in our ears and we text while we watch. I see the same in classes: newspapers, laptops and magazines. It seems as if we set ourselves up for minimum absorption capabilities.

Getting back to my appraiser friend from the other day. He was very appreciative that we were able to trim his “canned” addendum from 2.5 pages to 1 page. We eliminated terms from his report that are no longer considered up to date or not accurate (limited appraisal, Departure Provision/Rule) and crafted an appropriate “2009” type reconciliation. “WOW”, “I guess really need to pay a little attention because I missed all this stuff! “Yes”, I said “but imagine what you could absorb if you wanted to.”


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[Beached] 2Q 2009 Hamptons/North Fork Market Overview Available For Download

July 23, 2009 | 12:05 am | | Reports |

The 2Q 2009 Hamptons/North Fork Market Overview that I author for Prudential Douglas Elliman was released today.

Other reports we prepare can be found here.

The 2Q 2009 data and a series of updated charts are available.

Press coverage can be found here.

An excerpt

…There were 307 sales in the current quarter, 43.3% below the 541 sales in the prior year quarter but, 52.7% higher than the 201 sales in the prior quarter. The gain in the number of sales from the prior quarter was higher than seasonal norms, reflecting a release in pent-up demand from more limited sales activity at the end of 2008. Over the same period, the number of properties listed for sale continued to rise. Listing inventory totalled 2,286 properties, 23.6% higher than the 1,849 properties listed during the second quarter of 2008. The expansion of inventory was to be expected due to the decline in the number of sales. As a result of the rise in listing inventory and the decline in the number of sales, the monthly absorption rate—the number of months to sell all existing inventory at the current pace of sales—was 22.3 months, more than double the 10.3 month absorption rate average of the prior year quarter…

Download 2Q 2009 Hamptons/North Fork Market Overview

UPDATE: Listen to the podcast

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[Going Long] 2Q 2009 Long Island Market Overview Available For Download

July 23, 2009 | 12:05 am | | Reports |

The 2Q 2009 Long Island Market Overview that I author for Prudential Douglas Elliman was released today.

Other reports we prepare can be found here.

The 2Q 2009 data and a series of updated charts are available.

Press coverage can be found here.

An excerpt

…The number of sales fell 32.7% to 3,956 from 5,874 in the same period last year, but increased 37.7% from the prior quarter total of 2,872. The jump in number of sales was consistent with seasonal trends as this period has averaged a 35.4% increase in the prior 5 years. Seasonality in this market statistic is much more pronounced than in New York City, where the trend has been historically more moderate. The number of properties for sale peaked in the second quarter of 2008 at 26,145 properties. Listing inventory has fallen 10.2% from the peak to 23,485 properties, in contrast to the decline in the number of sales over the same period. The monthly absorption rate — the number of months it would take to sell all existing inventory at the current pace of sales — was 17.8 months, up from 13.4 months in the same period last year. Many sellers are opting to list properties when they determine the market has improved…

Download 2Q 2009 Long Island Market Overview

UPDATE: Listen to the podcast

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[Three Cents Worth] Absorption Mumbo (Conforming) Jumbo

April 23, 2009 | 10:27 pm | | Charts |

Sure happy it’s Thursday to share my Three Cents Worth on Curbed, at the intersection of neighborhood and real estate.

This week I parse some mumbo jumbo.

Click here to view this week’s post.

Check out previous Three Cents Worth posts.


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[East End] 1Q 2009 Hamptons/North Fork Market Overview Available For Download

April 23, 2009 | 1:06 am | | Reports |

The online version of the Prudential Douglas Elliman 1Q 2009 Hamptons/North Fork Market Overview [Miller Samuel] is available for download. Sorry, but I was tardy posting this report to my site after the initial release and coverage.

I have been writing various incarnations of the New York regional market report series for Prudential Douglas Elliman since 1994. The President and CEO of Prudential Douglas Elliman, Dottie Herman, is a big believer in publishing market data to create more transparency for consumers in the markets her firm serves – Manhattan to Montauk.

To build Hamptons/North Fork custom data tables

To view Hamptons/North Fork charts

An excerpt

…There were 201 sales in the first quarter, down 49.8% from 400 sales in the same period last year and 72.9% from the same period five years ago, which had 742 sales. The number of sales dropped 44.6% from the prior quarter, which had a total of 363 sales. The slow down in activity is attributable to the credit crunch, employment and compensation concerns on Wall Street and recessionary economic conditions. As a result of the decline in the number of sales listing inventory expanded. There were 2,289 properties available for sale at the end of the first quarter, up 23.9% from 1,848 properties during the same period last year. The combination of rising inventory and declining sales resulted in a jump in the monthly absorption rate – the number of months to sell all existing inventory at the current pace of sales – to 34.2 months, from 13.9 months in the prior year quarter and up from 17.2 months in the prior quarter… on the high water mark set in their local market in the past few years, rather than in line with current conditions…

Download report: 1Q 2009 Hamptons/North Fork Market Overview [pdf]


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1Q 2009 Long Island Market Overview Available For Download

April 23, 2009 | 1:01 am | | Reports |

The 1Q 2009 Long Island Market Overview that I author for Prudential Douglas Ellimanis available for download.

The President and CEO of Prudential Douglas Elliman, Dottie Herman, is a big believer in publishing market data to create more transparency for consumers in the market her firm serves – Manhattan to Montauk.

Other reports we prepare can be found here.

Customized tables for the 1Q 2009 Long Island data and a series of updated charts are available on our corporate site.

A report excerpt

…After peaking at 26,145 units in the second quarter of 2008, the number of listings has generally trended lower. There were 22,942 listings at the end of the first quarter, down 4.4% from 24,003 units in the same period last year. Listing inventory did rise 10.7% from the prior quarter, but this was a seasonal increase and lower than in four of the past five years during the same period. Inventory levels have been stabilizing over the past two years, however, the level of sales activity has been declining over the same period. There were 2,872 sales in the first quarter, 18.2% below the 3,513 sales of the same period a year ago. As a result, the monthly absorption – the number of months it would take to sell all existing inventory at the current pace of sales 9 was 24 months, up from 20.5 months in the same period last year…


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[Queens Sized Market] 1Q 2009 Queens Market Overview Available For Download

April 16, 2009 | 1:29 am | | Reports |

The 1Q 2009 Queens Market Overview that I author for Prudential Douglas Elliman was released today.

Other reports we prepare can be found here.

The 1Q 2009 data and a series of updated charts are also available.

Press coverage can be found here.

An excerpt

…Although the number of properties available for sale declined 7% to 10,421 from 11,206 listings in the same period last year, inventory expanded 6.1% from the prior quarter total of 9,822. The rise in inventory levels from the prior quarter was the result of the sharp decline in the number of sales over the same period. There were 1,801 sales in the first quarter, down 52.2% from 3,771 sales in the same period last year and down 34.2% from 2,737 sales in the prior quarter. The number of sales tends to decline from the fourth quarter to the first quarter of any given year, however, the decline during this period of the year was more than twice the five year average of 12.6% and outside of the five year range of -9.3% to -16.4%. The weakening regional economy and credit crunch as restricted the level of sales activity in the Queens housing market. Sellers continue to price property “behind” the market. As a result, the absorption rate – the number of months it would take to sell off existing inventory at the current pace of sales – has more than doubled over the past year. The absorption rate was 17.4 months in the first quarter, up from 8.9 months in the same period last year, both well above the 6.8 monthly average of the past five years…

Download 1Q 2009 Queens Market Overview

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[Three Cents Worth] Absorption Crossing the Blue Line

February 20, 2009 | 11:07 pm | | Charts |

It’s Friday – late – so it is one day after my usual Thursday spot to share my Three Cents Worth on Curbed, at the intersection of neighborhood and real estate. I was away this week and gave my post in advance, but Curbed, in its search of journalistic excellence, forgot to post it yesterday. An interesting series of comments ensued.

Click here to view this week’s post.

Check out previous Three Cents Worth posts.


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[Fee Simplistic] Thinking Outside The Tranche: Is It Time to Reinvent Appraisals For Income Properties?

January 25, 2009 | 10:25 am |

Fee Simplistic is a regular post by Martin Tessler, CRE whom after 30 years of commercial fee appraiser-related experience, gets to the bottom of real issues by seeing the both the trees and the forest. Marty has never been accused of being a man of few words and his commentary can’t be inspired on a specific day of the week.

…Jonathan Miller





From illiquidity to insolvency, to default, to unemployment, to declining demand for space and consumer spending, to falling rents, growing vacancies and overall economic gloom coupled with looming mortgage refinancing in the face of a continued credit market freeze-up. Is it time to realize that this might well be the perfect storm? What lessons have we learned? It does not take Advanced Appraisal 501 to have foreseen that the frenzied market produced by low interest rates, CMBS securitization that off-loaded risk, easy credit and lax underwriting standards, if not their complete absence as in the residential sector, was a disaster waiting to happen (archival Soapbox postings would confirm).

The appraisal world however, true to its role in reporting what the market was experiencing as of the valuation date, could only report back market metrics of sales prices/square foot, going-in cap rates, cash-on-cash yields, expected investor yields, rental growth, and vacancy trends. And if the appraisal lived up to its fundamental requirements, it would include a section on supply and demand metrics for the particular use of the subject property. Anecdotally, I can count on the fingers of one hand the number of appraisal reports reviewed in my previous financial institution days that truly measured supply and demand factors in apartment sale and rental scenarios, shopping center appraisals where share of the market sales ratios were calculated, office space supply and absorption vs. employment growth. This is not to say that these metrics were not presented in the appraisal report but the manner of presentation was generally “boilerplate” filler to convey the feeling that these factors were being addressed.

We have gone from a capital driven market back to what will be prevailing supply and demand metrics in the specific geographic market of the subject property. In essence we will be forced to return to market analysis as the basis of valuation rather than rely on the frenzied deals of the past created by easy credit. Nowhere is this more evident than in an overview of the capital markets where in 2007 commercial property sales generated $500 billion in financing that declined to $150 billion in 2008. For 2009, loans projected for maturation refinancing total between $80-90 billion. The present closure of the securitization market will mean that valuations are going to have to be dead-on in their opinion of value and absent bonafide market analysis measuring supply and demand the appraisal will likely not be worth the paper it is written on.

This brings to mind the question of estimating value in a market that is virtually shut down and is stuttering along to find itself in volatile economic circumstances. Should the FIRREA/USPAP protocols be amended to mandate that every appraisal look at a downside risk scenario? Thus not only would the appraisal report the opinion of value as of the date of value but it would also include the lower end of value if economic and market assumptions did not pan out. If investors and lenders are exposed to the downside would it enable a thawing of the credibility and credit freeze prevailing today? My opinion is-yes it would at least help.

The Wall Street Journal, in a recent article reporting on the mezzanine debt that financed the acquisition of the John Hancock Tower, quoted a lawyer specializing in real estate that “tranche warfare” is starting in the battles over who will sustain losses or retain equity from overleveraged debt and how these are going to be battles never previously encountered. The article went on to point out how mezzanine debt was sliced and diced among different investors similar to the tranching of CMBS debt. Compounding the problem is the fact that if there was a default an appraisal was to be undertaken to determine which investors retained equity and who were wiped out. Needless to say, arguments over the appraised value have started. A major factor contributing to the cash flow shortfall was that in the two year period from the time of the purchase vacancy in the building went fro 0 to 15%. Whether this was on the radar screen of the appraisers or attributable to the market would have been something that turned up in a definitive market analysis. This will be a very interesting period for lawyers if not appraisers who may well discover that the slicing and dicing may well have produced values (or prices) greater than the sum of the tranched parts.

All hands on deck man your battle stations


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[The Navigator] Strategic Planning Can Get Appraisers Under The TARP

October 20, 2008 | 10:13 am | |

Joseph P. Egan is a Massachusetts Certified General Real Estate Appraiser with over 25 years of professional valuation experience. The assignments performed by his firm, Joseph P. Egan & Associates, cover a broad range of commercial real estate properties as well as family and closely-held businesses in Cape Cod, Nantucket and Southeastern Massachusetts. This experience intersects with all major industries such as the automotive, food service, healthcare, lodging, marine, professional services, recreational, and retail sectors. Joe is a thoughtful and thorough writer who draws on this experience when delivering unique insight on issues that impact appraisers in today’s market. I am deeply grateful to have Joe’s to help us “navigate” this challenging environment for appraisers.
– Jonathan Miller



Earlier this month the Troubled Assets Relief Program (TARP) became a done deal and the U.S. Treasury has since been diligently crafting a global strategy to implement the greatest government bailout or rescue since the 1930’s.

Despite the many unknowns of the $700 billion program, one underlying theme being increasingly acknowledged is that TARP related assets will stimulate demand for experienced workout related professionals. Given what we know, it appears the increase will largely concern asset collateralized by commercial real estate and new construction assets.

One piece of evidence of the growing demand are the widely published reports of the FDIC’s efforts to employ more workout professionals beginning with retirees possessing prior on the job experience gained in the prior S&L bailout. In the private sector, Anthony LoPinto of SelectLeaders a leading commercial real estate recruiter stated in a recent blog post that due to “a meltdown of the financial system” and the need to “contend with the large pools and billions of dollars of commercial real estate loans that will be maturing over the next 12 to 36 months”, demand for experienced workout and restructuring professionals is expected to increase. An anecdotal review of available job postings, hiring news, and general industry dialogue all seem to corroborate Mr. LoPinto’s front line perspective.

The positive news is advisory and valuation companies of all types will likely have opportunities to meet the growing need for workout services. Professionals and organizations with prior workout exposure may have a leg up and perhaps be most inclined to seize opportunities. Less experienced professionals seeking to diversify into the arena can still adopt strategic and focused measures to explore opportunities.

Regardless of your level of workout experience, before dipping into this inviting yet clouded pool, it may be best to develop a reasonable short list of what we currently perceive to be in store under TARP and highlight a few differences between the last time workout services was a growth industry. Armed with this perspective (which is being further refined at this moment) a range of possible workout opportunities likely to be offered in the marketplace can be brought into closer focus.

Fully recognizing that the range of differences is an evolving topic, as TARP unfolds the short list of current differences include:

  • The financial and systemic magnitude of the TARP program and the solution it hopes to provide are much larger and more global than the S&L bailout. From a structural perspective, the range and diversity of market participants, stake holders and service providers will be broader as well.
  • Using the establishment of FIRREA in 1989 as the starting point, the S&L bailout lasted into the mid 1990’s. The timeframe for the TARP program is unknown due to dependent variables such as the type of assets to be acquired, price levels achieved, the degree to which assets are performing, holding periods (some assets may be held to maturity), and the manner in which Treasury adjusts their terms over time. Continued bank mergers and failures along with the dysfunctional state of the commercial credit pipeline, thus triggering the degree to which banks will need to participate in the TARP program, all remain significant variables as well.
  • In the S&L bailout, the bulk of assets acquired by the RTC and resold comprised whole asset sales acquired from a neat profile of U.S. banks. A significantly higher percentage of the troubled assets to be acquired under TARP, however, are expected to comprise internationally held whole mortgages and other financial instruments of many blends, rather than primarily hard assets such as real property. In addition, the troubled assets will be divided among the yet to be named asset managers in two groups handling either whole loans or securities backed by a multitude of mortgages.
  • Based on available information, gaining adequate control of securitized assets, aptly assessing risk, and developing reliable pricing and buy/sell mechanisms, particularly for securitized assets, will be the major challenges.
  • Through the consistent introduction of “innovative debt” structures and greater reliance on private rather than institutional capital, a broader pallet of international stakeholders now exists. The consistent formation of new private venture funds keen on opportunities to acquire distressed assets at favorable terms is just one example of how this realm is already expanding. Another stakeholder may comprise tax payers like you and me under a plan being considered where Treasury financing would be provided in selected joint venture transactions. The equity partnerships are aimed at promoting assets sales while providing the opportunity for tax payers to be a stakeholder.
  • Qualifying banks deciding whether to retain or acquire collateralized assets not sold to Treasury will represent another type of potential workout client. Certainly, the relaxing of market to market requirements, changes on the treatment of distressed assets in whole mergers, along with restrictions on executive pay, equity participation, and recoupment could provide incentives for banks to strongly consider holding or acquiring assets, except for the most seriously impaired. As part of this decision making process, banks will require workout related guidance on assets collateralized by real property.
  • The range of sophisticated analytical tools and the level of readily accessible public and proprietary market data, software applications and information technology have significantly increased since the 1990’s. Consequently, on the regional or local level appraisers providing the most sought after workout services will be required to demonstrate the high value capabilities and specialized technical expertise not readily decipherable from third party data sources or based on remotely developed software models.
  • Participating appraisers must fully understand the needs and structure of this evolving process which over time will ultimately become a sophisticated and highly channeled niche market. Consequently, a new long-term commitment to being properly positioned on the right regional and national radar screens will be paramount. Getting there first, establishing your targeted expertise, and being “top of mind” is even better.
  • Due to the magnitude of the current rescue plan as we know it, efficiency and credible assignments results will even rank higher. Project management skills, accountability, the ability follow defined scope of work requirements, and the willingness to provide high touch follow up service will no doubt reign supreme.
  • Given the volume of assets to be managed and Treasury’s emphasis on the “paramount need for expeditious implementation”, asset managers and other workout clients will seek out service providers with the capacity to reliably complete multi-property or portfolio assignments in the most optimum manner possible.

With these observations in mind, in addition to appraisals, some ideas on the types of targeted workout related services to be requested will include:

  • Liquidation Value The ability to estimate reasonable and adequately supported liquidation values will be needed area of expertise. Assisting banks in the development of “fair value” estimates on ORE properties could perhaps be another related service to be requested. (See FDIC, FIL 62-2008, Guidance on Other Real Estate, issued July, 2008)
  • Development Consulting Professionals and organizations with a firm local and regional grasp on absorption rates, development costs, unit pricing, sales concessions, bulk sale analyses, etc. or the more encompassing market and feasibility studies, will be sought out. Depending on your geographic region, through properly developed scope of work scenarios this niche service sector can offer good opportunities for developing a solid niche and attracting ongoing and repeat assignments.
  • Market Analysis Providing market data and specialized analysis to a range of clients are examples of the type of work out related assignments likely to be requested. Possible scenarios include requests for supplemental market data and analysis to be considered by a client in connection with an existing appraisal they are currently reviewing. Individuals and organizations performing advisory or valuation services in a market area where you have superior expertise or better resources may comprise another client group. The need for up to date and reliable market data and trend analyses to be utilized in connection with a client’s internal portfolio review processes is another area where market analysis services will have a good fit in the workout arena. Since the ability to assess a borrower’s capacity to continue to pay on a performing loan will be front and center, one offshoot in this area could possibly involve assignments supporting the underwriting and risk assessment processes with greater precision. Recognizing that the original mortgage was created at both a different time and underwriting scenario, such clients may require more on the ground intelligence addressing critical topics such as the state of the immediate market area and the competitive environment.
  • Property or Subject Specialization Professional advisory and firms with specialized areas of expertise will be sought out to provide reliable solutions concerning unique properties and problems. And based on what we already know about lax underwriting and loose credit standards, there will be many unique properties and problems. In a workout environment, prudent asset managers realize they cannot know every market or every property type and are inclined to turn to specialists for answers. The byproduct — timely and sound decision making is what they need most. One obvious example of specialized subjects involves the broad category of distressed properties with the possibility of further segmentation. Additional examples may include specialization by property type (e.g., gas stations, net leased restaurants, lodging properties, recreational properties, food processing plants, interval ownership resorts, etc.), by region or perhaps based on very specialized knowledge within a closely aligned field (e.g., geology, agriculture, environmental engineering, etc.).

The preceding review of the major aspects of the TARP program and brief list of likely workout services serve as only a brief back drop to the anticipated growing need for professional workout services. Certainly, many other key observations are worth noting and no doubt these waters will become clearer in coming weeks. Nevertheless, the preliminary list serves its purpose of being a vehicle to inspire interested professionals to begin to strategically consider the key questions surrounding the future for workout assignments, essentially the who, what, where, when, how, and why of it all. Naturally, for those among us already experiencing a steady increase in workout related assignments sharing your valued observations would be a true reflection of professionalism as we join together and prepare to meet the serious challenges before us in the coming financial and economic environment.


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