A drive-by appraisal, also known as an exterior-only appraisal, offers a simplified approach to determining a home’s value without the need for the appraiser to enter the property. Here’s a breakdown of what you need to know about this method:
What is a Drive-By Appraisal?
It is where an appraiser evaluates the market value of a home primarily through public data and an external inspection. Their processes include utilizing tax records, recent sales data of similar homes, and exterior assessment.
Pros of Drive-By Appraisals:
◦ Convenience: No need to prepare the home for an interior inspection.
◦ Speed: Faster completion and reporting compared to traditional appraisals.
◦ Cost-Effective: Generally less expensive, saving homeowners money.
◦ Objective Data: Focuses on objective criteria, minimizing potential biases.
Cons of Drive-By Appraisals:
◦ Limited Detail: Misses interior upgrades or unique home features.
◦ Assumptions Required: Relies on assumptions about the home’s interior condition.
◦ Limited Use: Not always suitable for every transaction, especially those needing precise valuations like custom home sales.
When to Consider a Drive-By Appraisal:
1 Ideal for refinancing or home equity loans.
2 Best suited for situations where interior features are less critical.
Before choosing a drive-by appraisal, consult with your lender to determine if it’s the right option for your needs. For more specific situations involving unique property features, a traditional appraisal will be more appropriate.
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
