Collateral Valuation Services

Collateral Valuation Services offered by Bank of North Dakota include:

  • Ag Real Estate Evaluations
  • Commercial Real Estate Evaluations
  • Chattel Evaluations
  • Appraisal Reviews for Ag and Commercial Real Estate
  • Appraisal Validation

Who can engage BND’s Collateral Valuation Services?

  • Any North Dakota financial institution
  • An attorney working on behalf of a North Dakota financial institution

Types Offered:

  • Ag land with improvements
  • Ag land without improvements

Report Includes:

  • Detailed narrative on the real estate being valued
  • Market information
  • Description of the data analyzed
  • Valuation techniques employed
  • Reasoning to support the value conclusion

Potential Uses:

  • Transactions that do not require appraisal
  • Determining the validity of existing value
  • Problem loan administration
  • Liquidation and workout scenarios

2024 Service Fees:

  • Market Approach: $500
  • Add Cost Approach (Improvements): $300
  • Add Site Visit: $350
  • Add Rush Fee: $300*
  • Add Cancellation Fee: $200**

The real estate must be located in the state of North Dakota. The only exception for location will be for collateral located in East Grand Forks, Moorhead, and Breckenridge. Turn times for ag/development land evaluations of 14 business days or less can be expected.

* Rush fee option moves turn time up five business days.
** Cancellation fees apply to requests withdrawn after two business days.

Types Offered:

  • Owner-occupied
  • Non-owner occupied

Report Includes:

  • Detailed narrative on the real estate being valued
  • Market information
  • Description of the data analyzed
  • Valuation techniques employed
  • Reasoning to support the value conclusion

Potential Uses:

  • Transactions that do not require an appraisal
  • Determine the validity of existing value
  • Problem loan administration
  • Liquidation and workout scenarios
  • “As is” and “As complete” valued

2024 Service Fees:

  • Market Approach: $600
  • Add Income or Cost Approach: $500
  • Add Site Visit: $350
  • Add Rush Fee: $300*
  • Add Cancellation Fee: $200**

Turn times for commercial evaluations of 14 business days or less can be expected. Market approach is standard service. Additional services and fees can be layered as requesting financial institution deems necessary. Income approach can be utilized for non-owner occupied properties. Cost approach can be added for newer properties.

* Rush fee option moves turn time up five business days.
** Cancellation fees apply to requests withdrawn after two business days.

Types Offered:

  • Farm Machinery
  • Livestock
  • Commercial & Industrial Equipment
  • Trucks & Trailers
  • Aircraft

Report Includes:

  • Specifics on the property
  • Comparable property sales
  • Description of the data analyzed
  • Valuation techniques employed
  • Reasoning to support the value conclusion

Potential Uses:

  • Providing a value for loan origination and/or renewal
  • Determining the validity of existing value
  • Problem loan administration
  • Liquidation and workout scenarios

2024 Service Fees:

  • 1-3 items: $300
  • 4-10 items: $400
  • 11-20 items: $800
  • 21-30 items: $1,200
  • >30 items: $1,800
  • Rush Fee: $300*
  • Cancellation Fee: $200**

The property can be located in any state, it does not have to be located in North Dakota. Turn times for chattel evaluations of 14 business days or less can be expected.

* Rush fee option moves turn time up five business days.
** Cancellation fees apply to requests withdrawn after two business days.

Types Offered:

  • Commercial Real Estate appraisal reviews
  • Ag Real Estate appraisal reviews

Report Includes:

  • Verification that the valuation methods and assumptions are clearly detailed and well-supported
  • Confirmation that appropriate data was gathered and analyzed logically
  • Assertion that the value conclusions are consistent with the information in the appraisal

Potential Uses:

  • Ensure compliance with technical rules
    and regulations
  • Determine reasonableness of an appraisal
  • Measure credibility of an appraisal
  • Reinforce confidence in an appraisal

2024 Service Fees:

  • Commercial Review: $200
  • Agricultural Review: $150

Turn times for appraisal reviews of one business day or less can be expected.

Types Offered:

  • Commercial Real Estate
  • Ag Real Estate

Report Includes:

  • Analysis of an appraisal greater than one-year old using tests to identify change, not value, from time of origination
  • Identifies change in physical condition such as new construction, renovation, deterioration or damage
  • Identifies changes in economic characteristics such as occupancy, Net Operating Income, market rents and rates of return

Potential Uses:

  • Loan renewal
  • Subsequent transactions
  • Loan monitoring and asset quality
  • Special asset management and problem loan administration

2024 Service Fees:

  • Appraisal Validation: $500
  • Cancellation Fee: $200*

Validations include determining physical or market changes in third party appraisals older than one year. Validations do not provide an opinion of value. Turn times for appraisal validations of 10 business days or less can be expected.

* Cancellation fees apply to requests withdrawn after two business days.

If you have any questions or want to request additional information, contact us at 701.328.5852 or bndvaluation@nd.gov.

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