Drive-by appraisals, also known as exterior-only appraisals, gained popularity during the COVID-19 pandemic as an alternative to traditional home appraisals. In this method, appraisers gather publicly available data and assess the exterior of a property without entering the home. This approach provides a quick and cost-effective option, particularly for refinancing and home equity loans. However, it relies on the assumption that the property is in average condition, making its accuracy dependent on this estimation. Therefore, while convenient, drive-by appraisals should not replace traditional appraisal methods entirely.
From an appraiser point of view, the drive-by appraisal takes less time, but the appraiser must make an extraordinary assumption that the home is in average condition.
Drive-by appraisals are best suited for low-risk situations like refinancing or home equity loans, where the property's interior features are less critical to determining its overall value.
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