The Latest Trend in Appraisals

It’s a vital and integral part of the homebuying process: the appraisal. In order to obtain a mortgage, lenders must know how much the house is worth so that you can appropriately borrow against it. After all, they want to know their investment is as sound as yours. The Covid-19 pandemic posed an interesting dilemma, though. How can one appraise a house without ever seeing it?

National Public Radio (NPR) recently produced a piece on the emergency measures put in place during quarantine that allowed appraisers to work remotely. What they discovered, however, is that even though the world has started to open back up, some appraisers are still choosing to work from home. 

How exactly does that work? 

The long and short of that answer is: technology. Gone are the days where appraisers are pressured to put a price tag on a property just to please a lender. Now they can use data, comps, accurate and high-definition photography, and even remote drones to appraise properties from afar. This is especially helpful to an aging and dwindling population of appraisers. 

There simply aren’t enough appraisers to perform in-person inspections in order to keep up with the sales demand in today’s current market. 

Given this information, last month Fannie Mae and Freddie Mac began approving desktop appraisals for all eligible transactions. In some ways, it allows appraisers to remain impartial and keeps them from being overworked. 

We do, however, recommend getting a full in-person inspection. No matter how desperate you are to purchase a home, don’t skip this critical step!