The Benefits of Exterior Appraisal for Your Home

If you are planning to sell your home, refinance your mortgage, or apply for a home equity loan, you may need to get an appraisal of your property. An appraisal is a professional opinion of the market value of your home based on its physical characteristics, location, and recent sales of similar homes in the area.

There are different types of appraisals, depending on the purpose and the lender’s requirements. One of the most common and convenient types is the exterior appraisal, also known as a drive-by appraisal or a summary appraisal.

An exterior appraisal is an appraisal that is based on an exterior-only inspection of the property. The appraiser does not enter the home, but only observes and photographs the exterior features and condition of the home. The appraiser then uses public records, MLS listings, tax records, or information provided by the homeowner to learn about the interior features and condition of the home.

An exterior appraisal has several benefits for homeowners, such as:

It is faster and cheaper than a full appraisal. An exterior appraisal typically takes less time and costs less money than a full appraisal that involves an interior inspection. This can save you time and money when you need an appraisal for your home.
It is less intrusive and safer than a full appraisal. An exterior appraisal does not require you to let a stranger into your home, which can be inconvenient and uncomfortable for some homeowners. It also reduces the risk of exposure to COVID-19 or other health hazards that may be present in the home.
It is sufficient for many purposes and situations. An exterior appraisal can provide an accurate estimate of the market value of your home for many purposes, such as refinancing your mortgage, applying for a home equity loan, or selling your home to a cash buyer. An exterior appraisal may also be acceptable for some conventional loans or government-backed loans, depending on the lender’s guidelines and the loan-to-value ratio.

However, an exterior appraisal also has some limitations and drawbacks, such as:

It may not capture all the relevant details and features of your home. An exterior appraisal relies on secondary sources of information to learn about the interior of your home, which may not be accurate or up-to-date. For example, if you have made significant improvements or repairs to your home that are not reflected in public records or MLS listings, an exterior appraisal may not account for them.
It may not be accepted by some lenders or buyers. An exterior appraisal may not meet the standards or expectations of some lenders or buyers who want a more thorough and reliable assessment of your home’s value. For example, if you are selling your home to a buyer who is using a conventional loan or a government-backed loan that requires a full appraisal, an exterior appraisal may not be sufficient.
It may result in a lower or higher value than a full appraisal. An exterior appraisal may not reflect the true market value of your home if there are significant discrepancies between the exterior and interior condition and features of your home. For example, if your home has serious structural issues or defects that are not visible from the outside, an exterior appraisal may overestimate its value. Conversely, if your home has exceptional upgrades or amenities that are not visible from the outside, an exterior appraisal may underestimate its value.

Frequently Asked Questions (FAQs)

How much does an exterior appraisal cost?

The cost of an exterior appraisal varies depending on the location, size, type, and complexity of the property. However, it is generally cheaper than a full appraisal that involves an interior inspection. According to HomeAdvisor, the average cost of an exterior appraisal in 2021 was $334, while the average cost of a full appraisal was $400.

How long does an exterior appraisal take?

The time it takes to complete an exterior appraisal depends on several factors, such as the schedule of the appraiser, the location of the property, the availability and reliability of data sources, and the amount of detail needed by the lender or client. However, it is generally quicker than a full appraisal that involves an interior inspection. You can expect to receive your exterior appraisal report within a few days after the appraiser visits your property.

How can I prepare for an exterior appraisal?

To prepare for an exterior appraisal, you should make sure that your property is clean and well-maintained from the outside. You should also provide any relevant information or documentation about your property to the appraiser, such as recent sales contracts, tax assessments, renovation receipts, floor plans, or photos of the interior. You should also be ready to answer any questions that the appraiser may have about your property. Sure, how about this:

How can I dispute an exterior appraisal if I disagree with the value?

If you disagree with the value of an exterior appraisal, you may have the option to dispute it with the lender or the appraiser. You should first review the appraisal report and look for any errors or omissions that may have affected the value. You should also gather any evidence or documents that support your claim, such as recent sales of comparable homes, tax assessments, renovation receipts, or interior photos. You should then contact the lender or the appraiser and explain why you think the value is incorrect and provide your evidence. You should also request a reconsideration of value or a second opinion from another appraiser. However, you should be aware that disputing an exterior appraisal may not guarantee a change in the value, and it may delay or jeopardize your loan or sale process. Therefore, you should only dispute an exterior appraisal if you have a strong case and a valid reason.

How can I get an exterior appraisal for my home?

To get an exterior appraisal for your home, you should contact a reputable and qualified appraisal company that offers this service. One of the best options is Residential Appraisal and Valuation Services, a leading provider of exterior appraisals in the Boston area. We use the latest technology and data sources to deliver accurate and reliable exterior appraisals for any purpose. We also offer competitive pricing and fast turnaround times. To get an exterior appraisal for your home, you can visit our website at www.residentialavs.com or call us at +1617-910-3700. We look forward to hearing from you and helping you with your appraisal needs.

We would love to work with you.