Desktop Appraisal

If you are planning to buy or sell a home, you may need to get an appraisal to determine its fair market value. An appraisal is a professional opinion of the value of a property based on its condition, location, features, and comparable sales in the area. However, getting an appraisal can be time-consuming, costly, and inconvenient, especially if you need to schedule an appointment with an appraiser who will visit your home and inspect it in person.

Fortunately, there is an alternative way to get an appraisal that is faster, and more convenient: a desktop appraisal. A desktop appraisal is a property valuation that is completed remotely by an appraiser using various digital data sources, such as photos, floor plans, tax records, and information from the Multiple Listing Service (MLS). A desktop appraisal does not require an in-person inspection of the property, which means it can be done more quickly and with less hassle.

What are the benefits of a desktop appraisal?

Desktop appraisals offer many benefits to homeowners, buyers, lenders, and appraisers alike, such as:

Speed: Desktop appraisals can be completed in a matter of days or even hours, compared to weeks for a traditional appraisal. This can help you save time and close your deal faster.
Cost: Desktop appraisals are typically cheaper than traditional appraisals, as they do not involve travel expenses or inspection fees. You can save money and reduce your closing costs by opting for a desktop appraisal.
Convenience: Desktop appraisals are more convenient than traditional appraisals, as they do not require you to coordinate with an appraiser or prepare your home for an inspection. You can get an appraisal without disrupting your schedule or privacy.
Accuracy: Desktop appraisals are based on reliable and up-to-date data sources that can provide a comprehensive and objective analysis of your property’s value. Desktop appraisers use the same standards and methods as traditional appraisers to ensure the quality and credibility of their reports.

When can you use a desktop appraisal?

Desktop appraisals can be used for various purposes, such as:

Home equity calculations: A desktop appraisal can help you determine the equity of your home and even obtain a home equity loan.
Portfolio evaluations: Desktop appraisals can be a useful and cost-effective tool to valuate multiple properties for those with real estate portfolios.
Loan servicing: Desktop appraisals can help lenders monitor the performance and risk of their loan portfolios and make informed decisions about modifications or refinancing.
Home sales: Desktop appraisals can be used for some home purchase transactions, depending on the lender’s requirements and guidelines. For example, Fannie Mae and Freddie Mac, the government-sponsored entities that buy and guarantee mortgages, have recently incorporated desktop appraisals into their selling guides, allowing them for single-family home purchase loans under certain conditions.

How to get a desktop appraisal?

To get a desktop appraisal, you need to find a licensed or certified appraiser who offers this service. You can search online for desktop appraisers in your area or ask your lender or real estate agent for recommendations. You may also need to provide some information and documentation about your property, such as:

Address and legal description
Photos of the exterior and interior
Floor plan with interior walls and gross living area (GLA) calculations
Property tax records
Recent sales or listings of comparable properties

The appraiser will then use various digital tools and data sources to analyze your property’s value and generate a report that will include:

A description of the property and its condition
A summary of the data sources and methods used
A market analysis and comparison of similar properties
An opinion of value with adjustments and explanations
A certification and signature of the appraiser

You will receive the report electronically or by mail within the agreed timeframe. You can then review the report and use it for your intended purpose.

Frequently Asked Questions (FAQs)

How much does a desktop appraisal cost?

The cost of a desktop appraisal may vary depending on the appraiser’s fees, the complexity of the property, and the scope of the report. However, it is generally cheaper than a traditional appraisal, which can range from $300 to $600 or more. A desktop appraisal may cost anywhere from $100 to $300, depending on the factors mentioned above.

How long does a desktop appraisal take?

The time it takes to complete a desktop appraisal may depend on the availability of the appraiser, the quality of the data sources, and the level of detail required. However, it is generally faster than a traditional appraisal, which can take up to several weeks to schedule and perform. A desktop appraisal may take as little as a few hours or up to a few days to finish.

How reliable is a desktop appraisal?

A desktop appraisal is as reliable as the data sources and methods used by the appraiser. Desktop appraisers use the same standards and ethics as traditional appraisers to ensure the accuracy and validity of their reports. They also use various digital tools and software to verify and analyze the data they collect. Moreover, desktop appraisals have been tested and approved by major lenders and regulators, such as Fannie Mae and Freddie Mac, who have found them to have similar risk performance and quality as traditional appraisals.

What are the limitations of a desktop appraisal?

A desktop appraisal has some limitations that may affect its suitability for certain situations. For example, a desktop appraisal may not be able to capture the unique features or nuances of a property that can only be observed in person, such as the quality of construction, the layout of rooms, or the curb appeal. A desktop appraisal may also not be available or accepted for some types of properties or transactions, such as:

Properties that are complex, unusual, or have limited data available
Properties that are located in rural, remote, or distressed areas
Properties that have significant damage, defects, or environmental issues
Properties that are subject to legal disputes, liens, or encumbrances
Transactions that involve high loan-to-value (LTV) ratios, low credit scores, or non-conforming loan products

In these cases, a traditional appraisal may be more appropriate or required by the lender or the buyer.

Can I dispute a desktop appraisal?

Yes, you can dispute a desktop appraisal if you believe it is inaccurate or incomplete. You can contact the appraiser or the lender who ordered the appraisal and request a reconsideration of value. You will need to provide evidence to support your claim, such as:

Errors or omissions in the report
New or updated information about the property
More recent or relevant comparable sales

The appraiser or the lender will then review your request and decide whether to revise the report or not. However, keep in mind that disputing an appraisal does not guarantee that the value will change in your favor.

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