- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (9)
Since there is a thread about "free AVM"'s and most "desk top appraisals" are no better than the AVM's, it appears that it would be a waste of money to pay for a desktop appraisal, especially if the loan to value ratio was close to 80%.
Besides, I don't think most lenders are going to accept a desktop appraisal, and it is the lenders that order the appraisals.
And as far as "offers", I don't care about "present market value", I care about "intrinsic value", and that is much more difficult to determine, and CMA's, AVM's, and Appraisals are only a starting point for that evaluation. Inflation curves, job availability, climate zone, and rent to buy living expense ratio are also critical for that evaluation.
"They will gather basic information about your home and assume that it is in average condition." -
That is the "biggest" complaint about Zillow's AVM; it "assumes" "average" condition. Even with a "drive by", how does one know that the interior was not "gutted"? Or how does one know it was not just recently fully "renovated"? Even the IRS for estate tax purposes wants more detail than that! Besides, Zillow and many of the other AVM's don't use a "comps" method at all. Zillow is modeling to all Non-distressed recent sales in the area. Not to 3 or 4 hand picked recent sales that might have some similarity.
No, the Desktop "appraisal" is only to be used as a starting point for a qualified licensed appraiser, and they need to go in the home and walk every room, as well as checking the conditions of the "assumed comparables" before finalizing their appraisal.
Of course, if the loan to value ratio is under 50%, the underwriter often doesn't need an appraisal for a refinance anyway, and paying for one when it is only for "paperwork processing" under those conditions makes no sense. As long as one isn't going to be paying for mortgage insurance, and one is getting the best rates available, they really don't care what someone else thinks it is worth.
Besides, I don't think most lenders are going to accept a desktop appraisal, and it is the lenders that order the appraisals.
And as far as "offers", I don't care about "present market value", I care about "intrinsic value", and that is much more difficult to determine, and CMA's, AVM's, and Appraisals are only a starting point for that evaluation. Inflation curves, job availability, climate zone, and rent to buy living expense ratio are also critical for that evaluation.
"They will gather basic information about your home and assume that it is in average condition." -
That is the "biggest" complaint about Zillow's AVM; it "assumes" "average" condition. Even with a "drive by", how does one know that the interior was not "gutted"? Or how does one know it was not just recently fully "renovated"? Even the IRS for estate tax purposes wants more detail than that! Besides, Zillow and many of the other AVM's don't use a "comps" method at all. Zillow is modeling to all Non-distressed recent sales in the area. Not to 3 or 4 hand picked recent sales that might have some similarity.
No, the Desktop "appraisal" is only to be used as a starting point for a qualified licensed appraiser, and they need to go in the home and walk every room, as well as checking the conditions of the "assumed comparables" before finalizing their appraisal.
Of course, if the loan to value ratio is under 50%, the underwriter often doesn't need an appraisal for a refinance anyway, and paying for one when it is only for "paperwork processing" under those conditions makes no sense. As long as one isn't going to be paying for mortgage insurance, and one is getting the best rates available, they really don't care what someone else thinks it is worth.
- sunnyview
- Contributions:25139
No. I would not pay for a desktop appraisal. With raw information from the MLS, I can come close enough on my own. I would think that a better market to sell desktop appraisals to would be people looking to appeal their taxes instead of looking to buy.
- Vince Curtis, "SoCal Appraiser"
- Contributions:4699
If you have a real appraiser reviewing sales, you'll have a higher probability of getting the correct value. Don't you think?
Yes, assuming the appraiser is competent, and many are not. Computers areent biased but also not as smart....
I do this (desktop appraisal / CMA / pulling comps) all the time but people generally dont want to pay for it. That was your question originally....
Yes, assuming the appraiser is competent, and many are not. Computers areent biased but also not as smart....
I do this (desktop appraisal / CMA / pulling comps) all the time but people generally dont want to pay for it. That was your question originally....
- Appraisal guy
- Contributions:120
No, an appraiser determines home value while a home inspector determines any issues with the home that may need repaired. These are two seperate products. Most real estate appraisers are not home inspectors but I'm sure that some appraisers also do home inspections just as some appraisers are realtors and visa versa. Appraisers, Home inspectors and Realtors all require different training.
- Appraisal guy
- Contributions:120
Do you think that an appraiser reviewing and pulling real comparable sales is more accurate than on line databases?
I've seen many cases when the on line database was not even close and they use the incorrect comparables. I've also seen on line data bases come within 2% of the value that I appraised the home for. The more typical the home, the more accurate the value.
If you have a real appraiser reviewing sales, you'll have a higher probability of getting the correct value. Don't you think?
- David Barr, "dpbarr2000"
- Contributions:280
So where does the home inspection process factor into your post? Is an appraiser also a licensed inspector?
- Caveat Emptor
- Contributions:500
Sounds suspiciously like a CMA. I'll have a real appraisal with a person in the home and a home inspector as well. thank-you-very-much.
- Cindy Quinton, "Cindy Quinton"
- Contributions:1330
No.
- Vince Curtis, "SoCal Appraiser"
- Contributions:4699
Why would people spend money on a value done at a desk and your computer when they can get it for free online, at Zillow and elsewhere ?
Would you buy a desktop appraisal before you purchase your home?
So with that said, would you pay for a desktop appraisal before you proceed with a home loan knowing that it may save you hundreds or thousands of dollars when buying, selling or refinancing your home? A desktop appraisal is an appraisal completed at the desk of the appraiser. They do not drive by your home or go into your home. They will gather basic information about your home and assume that it is in average condition. The benefit is the price of the appraisal is less than a full appraisal and that the home owner can keep partial control over their loan process by knowing what the home value is and from this point, they are able to negotiate interest rates and terms of their loan based on the value of their home or the home that they would like to buy. What about a drive by appraisal? I used to complete some drive by appraisals, but most of the banks that I work for no longer want this product. What do you think?
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.