What is a Desktop Appraisal? A Complete Guide

The Complete Guide to Desktop Appraisals

As the largest and most trusted appraisal company in the nation, True Footage understands that a home appraisal is a crucial step in any real estate transaction. Whether you are buying or selling a home, refinancing, or seeking a loan, a home appraisal helps determine the property's value, allowing you to make informed decisions. There are different types of home appraisals, including desktop appraisals, hybrid appraisals, and traditional appraisals. In this article, we will discuss desktop appraisals in detail and their benefits.

What is Desktop Appraisal?

A desktop appraisal, also known as a property appraisal, is a type of appraisal where the appraiser determines the value of a property without physically inspecting it. Instead, the appraiser relies on data available from public records and other sources, including Multiple Listing Service (MLS), tax records, and online data.

Desktop appraisals are typically faster and less expensive than traditional appraisals, making them ideal for situations where time and cost are factors. However, desktop appraisals are not suitable for all situations, such as when the property is unique, there are few comparable sales, or when the property's condition cannot be determined from online data.

How Does a Desktop Appraisal Work?

The appraiser begins by collecting data on the property and the local market. This includes information such as the property's location, size, age, and condition, as well as recent sales of comparable properties in the area. The appraiser may also consider other factors such as zoning laws, the local economy, and any improvements or renovations made to the property.

Using this information, the appraiser can determine the property's value using one of three methods: the sales comparison approach, the cost approach, or the income approach. The sales comparison approach is the most common method and involves comparing the subject property to recent sales of similar properties in the area. The cost approach is used for new or recently renovated properties and involves estimating the cost to build the property and deducting any depreciation. The income approach is used for rental properties and involves estimating the property's potential income based on current rental rates.

Once the appraiser has completed the analysis, they prepare a report that includes their findings and an opinion of the property's value. The report may also include photos of the property and the surrounding area and any relevant market data.

What Are The Benefits of a Desktop Appraisal?

Desktop appraisals offer several benefits over traditional appraisals. These include:

• Faster turnaround times - Since the appraiser does not need to physically inspect the property, the appraisal can be completed more quickly, typically within a few days.

• Lower costs - Desktop appraisals are less expensive than traditional appraisals, making them an attractive option for those looking to save money.

• Greater convenience - Since the appraiser does not need to visit the property, desktop appraisals are more convenient for homeowners who may not want to have an appraiser visit their property.

• Increased accuracy - Desktop appraisals rely on data from multiple sources, providing a more comprehensive analysis of the property and local market.

• Reduced bias - Since the appraiser does not physically inspect the property, they are less likely to be influenced by factors such as curb appeal, which can affect the appraiser's opinion of the property's value.

When is a Desktop Appraisal Appropriate?

Desktop appraisals are appropriate in situations where the property is typical and there are sufficient comparable sales data available. They are also appropriate when the property is in good condition and there are no significant renovations or improvements that have not been reported to public records.

However, there are situations where a desktop appraisal may not be appropriate. These include:

• Unique properties - Desktop appraisals may not be suitable for unique properties, such as historic homes or custom-built properties, where there are few comparable sales data available.

• Complex properties - Properties with complex features, such as large acreage or extensive improvements, may not be suitable for desktop appraisals.

• Properties in declining markets - In markets where property values are declining rapidly, a desktop appraisal may not provide an accurate assessment of the property's value.

• Properties with condition issues - Desktop appraisals rely on data available from public records and online sources, which may not provide accurate information on the property's condition. In these cases, a physical inspection may be necessary.

• High-value properties - Properties with a high value may require a more comprehensive appraisal, including a physical inspection, to ensure accuracy.

Desktop Appraisals vs. Hybrid Appraisals

In addition to desktop appraisals, there are also hybrid appraisals, which are a combination of desktop and traditional appraisals. Hybrid appraisals involve a physical inspection of the property by a third-party inspector, who provides photos and information on the property's condition to the appraiser. The appraiser then uses this information, along with data from public records and other sources, to complete the appraisal.

Hybrid appraisals offer some of the benefits of both traditional and desktop appraisals. They are typically faster and less expensive than traditional appraisals, while also providing more accurate information on the property's condition.

Final Thoughts

A desktop appraisal is a useful tool for determining the value of a property without the need for a physical inspection. Desktop appraisals are typically faster and less expensive than traditional appraisals, making them an attractive option for those looking to save time and money. However, desktop appraisals may not be suitable for all situations, such as unique properties or those with complex features or condition issues.

At True Footage, we have a team of experienced and knowledgeable property appraisers who can help you determine which type of appraisal is appropriate for your situation. If you are searching for a home appraiser in your market, look no further than True Footage for reliable, accurate, and timely appraisals.