Desktop Appraisals

Desktop appraisals, often referred to as appraisals without onsite inspections, have evolved into a modern and efficient method for evaluating property values in the dynamic landscape of real estate. This innovative approach allows appraisers to assess a property’s worth using online information, eliminating the need for in-person visits. Drawing data from local property tax assessments, multiple listing services (MLS), and various online sources, desktop appraisals provide a convenient alternative for obtaining property valuations. Let’s delve into the multifaceted aspects and applications of desktop appraisals, extending beyond lending scenarios.

It’s crucial to differentiate between desktop appraisals and hybrid appraisals. While hybrid appraisals involve a third party physically visiting the property and conveying information to the appraiser, desktop appraisals rely solely on online data. This sets them apart from electronic or automated appraisals, as the final opinion is delivered by a licensed appraiser.

• Estate Settlement: In the context of estate settlement, where time sensitivity is crucial, desktop appraisals provide a swift and efficient means to determine property values for distribution or liquidation purposes.
• For Sale by Owner (FSBO) Transactions: In scenarios where individuals are buying or selling a home without the involvement of a real estate agent, desktop appraisals offer a cost-effective and expedited valuation process.
• Buying and Selling without an Agent: For individuals navigating the complexities of real estate transactions independently, desktop appraisals become a valuable tool to gauge property values accurately and efficiently.
• Portfolio Evaluation: Beneficial for banks or investors with substantial real estate holdings, offering a cost-effective method to assess the value of their investments without physically inspecting each property.
• Home Equity Lending: Employed to evaluate borrowers for home equity loans or lines of credit.
• Mortgage Servicing: Widely used for periodic assessments by mortgage servicers, especially when adjusting mortgage insurance premiums based on the borrower’s home equity.

However, it’s imperative to acknowledge that when purchasing a home, a full appraisal is typically mandated due to potential incomplete data. Current guidelines from entities like Fannie Mae and Freddie Mac may also restrict desktop appraisals for refinancing purposes.