What is a Desktop Appraisal?

An appraisal is an invaluable part of the buying and selling process. It alerts the buyer to the value of the property to ensure they don’t overpay for it. Most lenders require buyers to get appraisals before they approve loans to confirm that the mortgage doesn’t exceed the actual property’s value. 

However, not all appraisers need to enter the home to estimate its value. You may be able to secure a desktop appraisal during the home purchase process. A desktop appraisal occurs when the appraiser runs their report digitally instead of touring the house. 

Desktop appraisals were essential during the COVID-19 pandemic when it wasn’t safe to enter different homes throughout the day. However, the practice has continued in the years since. Learn more about the appraisal process to decide whether the desktop method is right for you.

What Is a Desktop Appraisal?

A desktop appraisal is an evaluation of a property that doesn’t require an appraiser to perform a physical inspection of the home. Instead of walking through the property, the appraiser can review digital records and calculate what the home should be worth. 

Here are a few data sources the appraiser will review: 

• Public documents like tax records
• Multiple Listing Service (MLS) data
• Property photos
• Floor plans with interior walls
• Gross living area (GLA) calculations
• Previous appraisals and other relevant data

A desktop appraisal is different from a hybrid appraisal. In a hybrid option, a third party visits the property and gathers information on the exterior and interior. This third party then passes the information to the certified appraiser, who completes the formal report. 

A desktop appraisal also differs from the electrical appraisal or automated valuation processes. These estimates are less formal and may not be accepted by mortgage lenders. A licensed appraiser still needs to complete the desktop appraisal process.

Desktop Appraisals vs. Traditional Appraisals

It’s hard to define desktop appraisals without looking into traditional appraisals first. Here’s what you need to know about the traditional appraisal process and how the desktop version compares.

Traditional (Full) Appraisals

With a full appraisal, a licensed inspector conducts an on-site evaluation of the property. They will take pictures of the home to evaluate the condition, review the floor plan, and note any necessary repairs. This is all done through direct observation – if the inspector sees problems with the roof, they will take a picture and consider the aging roof when calculating the property’s value. 

A full appraisal can be time-consuming. The appraiser needs to coordinate a time with the homeowner and will spend multiple hours reviewing the state of the property. This also makes a full appraisal more expensive. As of 2025, a full appraisal costs around $350, with costs increasing depending on home size or region. 

A traditional appraisal is required for most home loans, including mortgage refinancing applications. It is more comprehensive and detailed, which should make the appraisal more accurate. These appraisals are particularly useful for complex properties or unique homes in the area.

Desktop Appraisals

The only thing an appraiser needs to complete a desktop appraisal is an internet connection. They do not need to visit the property and instead can complete the appraisal report with information available to them through various tools and online resources. 

Because the appraiser doesn’t need to travel or tour the home, the cost of a desktop appraisal is usually much lower. It can cost between $75 and $200 to complete, depending on the home type and size. A desktop appraisal can also have a faster turnaround time because the appraiser can start on the report immediately. They don’t have to wait to inspect the property to begin compiling the report. While a full appraisal could take a week or more to complete, a desktop appraisal could be drafted within a few hours. 

However, these appraisals come with drawbacks. The appraiser might miss certain details about the property’s condition because they cannot see the house for themselves. They also might not factor recent upgrades into the report because they don’t have documentation on the projects.

Desktop Appraisals vs. Hybrid Appraisals

If a desktop appraisal isn’t a good fit for your needs, you may benefit from seeking out a hybrid appraisal instead. With this option, an expert third party provides on-site data collection on the subject property. They share the data with the appraiser, who then compiles the appraisal report. This method combines the remote analysis of a desktop appraisal with the on-site evaluation of a traditional review. 

During the on-site evaluation, the data collector will do a thorough interior and exterior inspection (complete with photos), while also taking measurements of the property. All of this information is then passed on to the appraiser. 

Credible third parties could include property inspectors, real estate agents, or other appraisers who live in the area. The data collector must be unbiased in this process. For example, if the data collector is a real estate agent, they likely won’t be the buyer’s agent representing the sale or the seller’s agent trying to move the property. Both agents have their biases and agendas that could get in the way of objectively reporting on the state of the property. 

If you are not getting a full appraisal, you can feel confident that both hybrid and desktop appraisals are compliant with the Uniform Standards of Professional Appraisal Practice (USPAP), which means they follow specific rules and ethics to offer fair, objective services. In short, you can trust the validity of your desktop appraisal.

When Are Desktop Appraisals Used?

Desktop appraisal reports were essential during the lockdown and quarantine periods of the COVID-19 pandemic. However, their usage has remained popular in the years since. Here are a few situations where a desktop appraisal could be used: 

• Single-family home purchases where the loan-to-value ratio is less than 90%. These appraisals are more likely to be accepted for easy properties to evaluate, like a new construction house in a neighborhood where four of the same units just sold.  
• Mortgage servicing, particularly when removing mortgage insurance premiums. Most private mortgage insurance is removed when buyers have 20% equity in the home. Buyers might ask for an appraisal to prove that their loan is less than 80% of what the home is worth.
• Home equity loan approval. These appraisals could also be used when applying for home equity lines of credit. 
• Portfolio evaluations for banks or investors with multiple properties. 

Oftentimes, the eligibility of a desktop appraisal is taken on a case-by-case basis. Just because one house qualifies for one of these property appraisal methods doesn’t mean the next one will. Different buildings, locations, and loans all come with guidelines for the types of appraisals needed.

Eligibility Requirements for Desktop Appraisals

While you can talk to your mortgage lender about the possibility of doing a desktop appraisal, there are a few common eligibility requirements that determine whether the subject property can be evaluated online. Follow this checklist to see if your purchase could potentially qualify for a desktop appraisal. 

• You are purchasing a property. Desktop appraisals are typically not used for refinancing.
• You are purchasing a single-unit principal residence. You usually cannot use a desktop appraisal for a second home or investment property. 
• The loan-to-value ratio of no more than 90%.  
• The property is one unit. This also includes properties with accessory dwelling units (ADUs) or units within a planned unit development (PUD).
• The appraiser has sufficient information to develop a credible report. This includes access to tax records, the multiple listing service, and other relevant public records. 

Even if your property qualifies for a desktop appraisal, the lender has the option to request a traditional appraisal instead. It is up to their discretion whether they want an in-person property valuation or a digital one will suffice. In most cases, a property will receive an approval/eligible recommendation for a desktop appraisal, and then the lender will decide if that is the best option to choose. 

Benefits of Desktop Appraisals

There are several benefits of choosing the desktop option instead of scheduling a full appraisal. The cost savings to the buyer are significant and valuable during an already expensive process. The speed of the process is also beneficial to people who are trying to close deals quickly. If an appraisal is one of the few steps holding a seller back, a desktop evaluation could get them to the closing table sooner. 

Many sellers also appreciate the desktop appraisal process if they currently live in the property. They don’t have to coordinate schedules with an appraiser or stay home during the appointment. 

There is also a reduced chance for bias because the appraiser won’t physically visit the property. The appraiser might not think less of the home for personal reasons, potentially devaluing it. While personal bias goes against the ethics of the USPAP, appraisers are also human beings who can make mistakes. Desktop appraisals allow these professionals to focus only on the data supplied to them.  

Some industry leaders also believe desktop appraisals can elevate the practice as a whole. More objective property data collection and analysis will lead to better reports. This helps future appraisals because the appraisers will have more accurate data to reference. This makes the real estate buying and selling processes better for all parties involved.

Drawbacks and Limitations

Despite the value that these reports provide, there are some drawbacks to getting a desktop valuation. An appraiser could overvalue a house if they rely exclusively on the photos provided to them. The images could be outdated or misleading, which means they no longer reflect the property’s condition. 

Conversely, they might undervalue a house if they don’t have access to updated images that showcase repairs and upgrades. The effect of these changes also might not be reflected in the photos provided. 

Many people believe these professionals need as much information as possible to get an accurate appraisal opinion. Limiting the reporting to online data rather than an in-person inspection of the property could prevent appraisers from having a clear understanding of the home. 

The Impact on Mortgage Applications

Like traditional appraisals, the desktop appraisal determines how much a mortgage lender will allow a buyer to borrow for a home. If a home is listed for $400,000 on the MLS but the appraisal report says the home is only worth $350,000, then the lender will not approve a loan that allows the seller to purchase the home for the listing price. The buyer and seller will need to negotiate to get closer to the appraisal. 

The house serves as the borrower’s collateral, so the accuracy of the appraisal matters significantly. If the buyer defaults on their loan, the mortgage company will have to try to sell the property to recoup the money it lost. The lender cannot sell a house worth $350,000 for $400,000. If the buyer only has 10% equity in the home, the loan size on the property would be $360,000 if they paid the listing price, not the appraised value. 

Cash buyers don’t have to worry about home appraisals. While they might still seek out an appraisal before closing, there isn’t a lender requesting a report. A cash buyer is more likely to conduct a personal inspection before completing the purchase transaction.

What to Do When Considering Properties with Desktop Appraisals?

If you want to move forward with a desktop appraisal, make sure you are confident that the value of the home aligns with what the seller is asking for it. Here are a few ways to protect your financial interest while still finding a dream home. 

• Research the condition of the property thoroughly. Because the appraiser won’t be doing an in-person inspection, you need to do your own work. The home inspection is even more important if you opt for a desktop analysis. 
• Look at comparable sales. See if similar properties have sold in the same neighborhood recently. 
• Review the appraisal carefully once received. This is particularly important if the value doesn’t match what you believe the property is worth. Make sure the appraiser has accurate data to work from. If you suspect inaccuracies, collect and provide factual information that addresses your specific concerns. Share this information with your lender. 

You have to advocate for yourself and your potential property regardless of the type of appraisal you have. Make sure all reports are accurate and have healthy data sets that drive the results. This way you will pay a fair price for the home you choose. 

Find a Real Estate Agent to Advise on the Appraisal Process

You don’t have to be a real estate expert to buy a house, but you need to hire someone who is. Your Realtor can help you understand the eligibility requirements and limitations of a desktop appraisal to help you decide whether this option is right for you. They can also help you review the data to better understand these reports. 

Turn to FastExpert to find a qualified real estate agent you can trust. You can review profiles, get to know agents digitally, and choose the best ones to interview. This is one of the best ways to find experienced Realtors in your area. Try FastExpert today and take the first steps to buy a home.