Desk Appraisal

Desk appraisal summary:

• A desk appraisal is an appraisal that happens remotely and doesn't require an appraiser to visit the home in person.

• Desk appraisals rely on public records and home valuation software to determine what your home is worth.

• Lenders may allow desk appraisals when you apply for a home equity loan or home equity line of credit (HELOC). 

Desk appraisal definition and meaning

A desk appraisal (or desktop appraisal) is just what it sounds like—an appraisal that happens at a desk instead of out in the field. An appraiser or lender uses special valuation software, public sales records, and tax records to decide how much a home is worth. 

Desk appraisals are sometimes substituted for an in-person appraisal when a homeowner applies for a home equity loan, home equity line of credit (HELOC), or mortgage refinance loan. A desk appraisal can save time and potentially speed up the process for loan approval. 

Key concept: A desk appraisal is a home appraisal that's completed remotely.

More about desk appraisals

One of the benefits of home ownership is the chance to build equity. Home equity is the difference between what you owe on the property and what it's worth. One way to turn your home equity into cash you can spend is to apply for a home equity loan or HELOC. 

When you apply for a home equity loan the lender will need to know your home's value. That's where the desk appraisal comes in. 

A desk appraisal is a cost-efficient way for the lender to get a valuation of your home. 

Desk appraisal: a comprehensive breakdown

Appraisals tell lenders about a home's value and its condition. Lenders use this information to decide whether to approve you for a loan and how much you could borrow with a home equity loan.

Your lender might give you the option to get a desk appraisal to establish value. If you agree, the lender or an appraiser will collect data about the home to come up with a valuation. Data sources may include:

• Public sales records

• Property tax records

• Previous appraisals

• Market data and similar home sales 

All the information that's gathered is plugged into automated valuation modeling (AVM) software. (That's code for a computer program that calculates home values.) The software creates an appraisal report, and you and the lender get a copy.

If you don't agree with the valuation, you can ask the lender to reconsider. You'll usually need to prove that the appraisal missed some key information about the home that affects its value. You could also ask for an in-person appraisal.

Desk appraisal vs. other appraisals

Some lenders allow desk appraisals, but others require an in-person or hybrid appraisal instead. 

You probably remember how an in-person appraisal works if you had one when you bought your home. The appraiser comes out to the home to take photos and measurements. They'll also check out comparable homes (called comps) in the area that have sold recently. The final valuation is influenced by the comps and what they see. 

Hybrid appraisals combine an in-person visit with a remote valuation. One person visits the home to take pictures and take measurements. They'll also gather data about the home from the same sources used for a desk appraisal. Once they've got all the information they need, they pass it on to a professional appraiser who reviews everything and comes up with a value. 

Is a desk appraisal a good option? They may be less expensive since the appraiser doesn't have to visit the property. There's also less room for bias, which can sometimes happen when an appraiser views a home in person. Whether you can get a desk appraisal is up to the lender. 

An appraisal is one of the things you’ll need to get a home equity loan. Talk to your lender about the appraisal process so you know what to expect. 

At Achieve, when you apply for a home equity loan, we perform a desk appraisal at no cost to you.