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Although 2020 is coming to a close, the impact of COVID-19 lingers. While more appraisers are willing to enter homes to do appraisals (and more homeowners are willing to let them do so), there are still a number of situations where an interior inspection isn’t feasible. In some cases, Fannie Mae may be willing to offer an appraisal waiver, but these are still subject to strict guidelines.
And low interest rates continue to push demand for refis - and appraisals - to record highs, which can also make it challenging to schedule a complete, traditional appraisal. When an appraisal is required but the standard 1004 interior inspection can’t be done, there are alternatives available, including the following.
Exterior-Only (“Drive-By”) Appraisals: The appraiser will drive by the property and view it from the outside, including taking photos.
Desktop Appraisals: The appraiser will do an analysis of the property, as well as property with comparable value, without visiting the property. These now use standard UAD forms, and may include viewing exterior and interior photos, or viewing the property via video conference.
Automated Valuation Model (AVM) services: AVMs provide a point of value estimate for a property using a combination of public records/historical sales data and a mathematical valuation algorithm. AVMs are usually used in home equity lending with small loan amounts, or as a preview of the range of value likely with a given property to determine if there is a basis to go forward with an appraisal on a particular loan.
Broker Price Opinion (BPO) services: BPOs are an estimated value of the property as determined by a licensed Realtor. BPOs provide an “as is” estimate of value based on the Realtor's opinion and current market listings. Recent regulatory developments deprecated the use of the BPO within home equity lending or portfolio valuation situations.
Market Analysis & Condition Reports (MACR): MACR is a tool created by (and only available from) Triserv. It's tailor-made for HELOC lenders/lien holders/servicers. It provides a comprehensive look at a property’s condition, neighborhood and value with the best available data tools, combined with a physical onsite inspection performed by a professional home inspector. MACR meets Interagency Guidelines for evaluation of loan amounts under $250,000.
At Triserv, we’re ready to provide whichever product fits your needs best. We pride ourselves on our superior customer service and communication, speedy turntimes, and fee transparency. Contact Joe Bryant for more information at clientsales@triservllc.com or (904) 371-0870.
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