Over the next few months, requests to get drive-appraisals done are bound to multiply, and this has a lot to do with a recent decision made by the U.S. Federal Reserve Bank. In March 2022, the Fed issued an interest rate increase that directly impacts home buyers and mortgage borrowers. The Fed foresees this will happen again this year, perhaps more than once. Housing market analysts believe that the prospect of mortgage interest rates rising in the near future will result in a spike of home buying and refinancing activities, and this means quite a few more drive by appraisal orders.
Different Types of Home Appraisals: Drive By Appraisals, Full Appraisals, and More
A mortgage appraisal is an inspection conducted by licensed and certified real estate professionals for the purpose of determining property values. This information is required in every property transaction that involves mortgage financing. For the most part, mortgage appraisals are ordered by the lender handling residential loan applications, which include home purchases and refinancing existing loans. It is not uncommon for homeowners to get an appraisal done when they plan on listing their properties for sale, and the same can be said about some prospective buyers who wish to negotiate the price of a home.
How Does a Drive By Appraisal Work
Drive by appraisals begin with the appraiser sitting down to research the value of the property before they ever leave the office; this is often done through software tools that connect to databases. The next step is the “drive by” portion of the inspection, which involves the appraiser going to the location, walking around the neighborhood, and inspecting the property from the exterior. Drive by appraisal reports typically feature photographs of the property from different angles, and older images may be included in some reports if they are available.
Why Order a Drive By Appraisal?
Drive by appraisals are preferred by mortgage lenders in refinance transactions because they are faster to complete without sacrificing the accuracy of the property valuation. They were also extensively used during the worst months of the COVID-19 pandemic, from 2020 to 2021. Mortgage lenders and brokers are most likely to request drive by appraisals, but these reports can also be ordered by homeowners—or even prospective buyers—who wish for more information, or a second opinion on a property valuation.
If you’re interested in learning more about these solutions or need an appraisal today, don’t hesitate to contact Appraisals Unlimited, either by calling 781-449-7600 or emailing us at email@example.com.