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EducationMarch 20, 2020

Drive-By Appraisals: Exterior Inspection Only Properties

Guide to drive-by appraisals as safe alternative during pandemic with limitations and applications.

By Paul Myers

A drive-by appraisal is an exterior-only inspection where I assess the property's condition, lot, neighborhood, and comparable sales without entering the home. They're faster and cheaper than full appraisals but miss interior details like remodeling quality and system condition.

What It Covers

  • Exterior condition
  • Lot size/configuration
  • Neighborhood appeal
  • Roof, siding, foundation (from outside)
  • Overall property appearance

What It Misses

  • Interior layout
  • System functionality
  • Deferred maintenance details
  • Remodeling quality
  • Condition of systems

When Used

Pandemic 2020: Safety precaution when interior access risky.

Normally: Not standard. Full interior inspection is appraisal standard.

Value Implications

Drive-by appraisals typically more conservative. Interior unknowns warrant lower valuations.

Used primarily for refinances where recent appraisal exists and property hasn't changed materially.

Limitations

Clear limitation: Interior condition completely unknown. Valuation has inherent uncertainty.

Not appropriate for purchase transactions or major loan amounts.

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Drive-by vs. full appraisal? Understanding safety measures and limitations. Contact me.

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