Desktop Appraisal Fundamentals Explained

If you’re in the market to buy or sell a property, you’re likely familiar with appraisals. They are a crucial step in determining the value of a property, and desktop appraisals have recently gained popularity as an alternative to traditional appraisals. In this blog post, we will cover all the essentials of desktop appraisals, including how they differ from other types of appraisals and how they work. We’ll also discuss the accuracy of desktop appraisals and when you should consider getting one. 

What Is A Desktop Appraisal?

A desktop appraisal is a property evaluation method that does not involve a physical inspection but rather utilizes online and other available sources. This type of appraisal is faster than traditional methods, making it suitable for refinancing, portfolio valuation, and tax assessment purposes.

Desktop Appraisal Vs. Other Types Of Appraisals

When it comes to determining a property’s value, there are different methods used in the real estate industry. Desktop appraisal is an approach that differs from others due to its remote nature. Unlike traditional appraisals that require an in-person inspection, desktop appraisals use available data and online research to determine a property’s value. Hybrid appraisals combine both remote and in-person inspections for improved accuracy. Whether you choose a desktop or traditional appraisal depends on various factors like your financing needs, property type, and LTV ratio.

Desktop Appraisal Vs. Full Appraisal

Desktop appraisals differ from full appraisals in several ways. Instead of an appraiser physically visiting the property, desktop appraisals use available data sources like tax records and the MLS to determine the value of the property. While they can be quicker and less expensive than full appraisals, desktop appraisals may not be as accurate since they don’t involve a physical inspection of the property. When deciding which type of appraisal is right for you, consider factors such as the purpose of the appraisal, type of property, and complexity of the valuation process.

Desktop Appraisal Vs. Hybrid Appraisal

Desktop appraisals and hybrid appraisals are two options available to homeowners looking to evaluate their property’s value. Desktop appraisals can be done using online research tools such as tax records and multiple listing services (MLS), whereas hybrid appraisals provide for additional information through an on-site visit by a professional appraiser. When considering which option is best for you, remember that desktop appraisals tend to be quicker and more affordable but may not provide as comprehensive a valuation process as hybrid appraisals. Always keep in mind the type of appraisal needed based on your specific situation, whether it’s for financing or purchasing purposes.

How Does A Desktop Appraisal Work?

A desktop appraisal is an online property valuation that doesn’t require a physical inspection. The appraiser relies on public records and other data sources to estimate the property’s value, making it quicker and cheaper than traditional appraisals. However, properties with unique features or in remote areas may not be suitable for this method.

Are Desktop Appraisals Accurate?

The accuracy of a desktop appraisal depends on the quality of data and the appraiser’s expertise. It’s suitable for simple properties with no unique features, but may not be as precise as an in-person inspection. However, it can still provide a decent estimation of property value.

When Should You Consider A Desktop Appraisal?

A desktop appraisal is a suitable option when time or accessibility is constrained. It’s best for low-risk properties or refinances and in well-established markets or recently appraised properties. However, for a comprehensive evaluation, an on-site appraisal may be necessary.

Pros Of A Desktop Appraisal

Desktop appraisals have both advantages and disadvantages to consider. While they’re less expensive and quicker than traditional appraisals that require an in-person inspection, they also have limitations that can affect accuracy. Desktop appraisals rely heavily on available data such as MLS information and tax records which may not give a complete picture of the property’s value. 

Pros

While considering a desktop appraisal for your property valuation needs, it is essential to remember the many advantages they offer. These include faster turnaround times compared to traditional appraisals. Desktop appraisals also rely on public data sources such as tax records and MLS data rather than requiring an in-person visit from an appraiser or inspector. This allows for greater privacy for homeowners while still ensuring a reliable appraisal report. So if you’re looking for a convenient way to assess your property’s value quickly, consider using a desktop appraisal.

What Are The Guidelines For A Desktop Appraisal?

Desktop appraisals can be done remotely via online sources. Appraisers must review public records and consider location, condition, and recent sales of similar properties. However, desktop appraisals may not always be appropriate for all properties or scenarios.

How Do Desktop Appraisal Forms Differ?

Desktop appraisal forms differ from traditional appraisals because they don’t require a physical inspection, and instead rely on public records and online databases. They typically have fewer required fields, but their value estimates may be less accurate due to the lack of physical inspection.

Conclusion

Desktop appraisals are an effective way to get a quick and reliable valuation of your property. They differ from full appraisals and hybrid appraisals in that they rely solely on public records, MLS data, and other third-party sources. While desktop appraisals may not be as comprehensive as the other types of appraisals, they are still accurate and can be used in certain situations. Before deciding to get a desktop appraisal, you should consider the pros and cons. To learn more about the guidelines for desktop appraisals contact us at AmeriMac today!