WORKSHOP I: REO VALUATION - LUCK OR SKILL?

Face off against your colleagues and competitors in this hand’s on demonstration of REO valuation. Attendees will learn about various valuation approaches and gain practical experience applying them to an actual valuation exercise. Underbid and your efforts are wasted. Overbid and you lose money. Either way, you will emerge with a better sense of REO valuations.

Attendees in this workshop will participate in a mock exercise designed to illustrate the challenges risk managers face in valuing repossessed properties. Teams will be given packets of materials on the same property that include an interior appraisal, an automated valuation model, a broker price opinion and public information from the Internet about the location and other properties in the area.

Using the materials, teams will devise a bid for the property. The “bank” in the scenario will accept an offer that is at least 85% of the pre-identified market value. The mission is to buy the house at the lowest possible price.

The objective of the exercise is for participants to come away with a working knowledge of various valuation tools, the subjective nature of the process and challenges lenders have in ensuring they get the best possible return on their collateral.