A desktop appraisal is an opinion of value an appraiser develops without personally visiting the property. Do I personally accept desktop appraisal assignments? Yes, I do. I’m comfortable doing ones that I can get information on. I need evidence of its condition on the date of value.
The listing photos were taken before the fire
On one desktop assignment, I looked at the MLS (multiple listing service), accepted the order, and then learned there had been a fire inside the house since the listing. The fire was the reason for the appraisal. If I’d stopped at the old pictures, I would have thought the house was fine.
When I asked about the interior condition, they sent me pictures of the fire damage. I basically called everybody listed on the appraisal because I was able to on that desktop assignment. The old photos showed the rooms before the fire. For a value date after the fire, I had to address the damage the newer photos showed.
If I go and look at the exterior of the house, how much can I tell you about the rooms inside? Suppose they send me pictures of the interior that’s all burned up from a house fire and three of the rooms are messed up. That would definitely change my opinion of value. I’d look for sales that show how buyers priced the repairs.
When recent photos and records are enough
Say the house just sold in the last couple weeks or in the last year. I can look at the MLS and generally tell how it showed when it sold. I ask for updated pictures. When the assignment permits contact, I call the agent. What did they see for themselves, and when were they last inside?
You can look at MLS pictures. You can look at photos online. You can get photos provided by the homeowner. I always request photographs because ultimately I need to see which rooms the pictures cover and when somebody took them. If all three sources show the same listing photos, I’ve still only seen the house on one date.
Photo by Joe Ellington, January 2024. This bathroom is from a different home. The photo records the finishes visible on the day of that visit.
When I’d need a full appraisal with a visit
If it’s not listed on MLS and I can only get exterior pictures, there’s only so much I can do. If I can’t get any kind of idea what the interior looks like, I’ll usually turn it down. Some desktop assignments limit whom I can contact. If there’s just not enough information, I ask whether a visit or other evidence would resolve the question. If I’ve accepted the assignment and can’t produce credible results, I have to withdraw.
Square footage needs checking, too. If two sketches disagree, I’d want to see the dimensions before using either total. My home measurement guide explains how I check them.
When is a desktop scope workable?
Do the photos and records describe the home on the date of value?
- Enough verified evidence
- Use the desktop scope if it supports the assignment.
- A material gap remains
- Request evidence or a visit. Decline or withdraw if the gap prevents credible results.
Can an appraiser assume the interior is average?
What about the things that I don’t know about the house? I can’t tell you its condition just because the average home in the neighborhood is well maintained. Under USPAP, an extraordinary assumption needs a reasonable basis and a credible analysis. Its use must be necessary for credible results. The report must explain the assumption and disclose that it might have affected the results.
For a Fannie Mae desktop appraisal, a stricter rule applies. I have to verify information from an interested homeowner or agent with a source who has no financial stake in the transaction. I can’t use an extraordinary assumption about the home’s condition, quality or physical features, or leave those items subject to later verification. For a mortgage, ask your lender which option it accepts.
What to send before ordering a desktop appraisal
I generally tell the person who calls I need all the information I can get about the house. Start with the interior and the exterior of the house. Send current photos, a floor plan if you have one, a description of anything that you know that’s wrong with the house, and any updates. I don’t want to just know the bad things. I want to know the good things too. Include the dates so I can get a picture in my head of what the interior of the house looks like.