The coronavirus pandemic certainly has created a new situation for appraisers, particularly in the residential market. Since many appraisers aren’t conducting in-home inspections during state-ordered stay-at-home restrictions, it stands to reason that they’ll take advantage of the benefits that technology provides. While alternative appraisal services like bifurcated, hybrid and desktop evaluations aren’t new, they are becoming more common.
Of course, appraisers are probably aware, the difference between a hybrid appraisal and a traditional appraisal is most likely that a non-appraiser enters the property to inspect it, as opposed to the appraiser who completes the analysis personally. In either case, someone has to enter the property, and that typically isn’t happening during the coronavirus pandemic.
During this time, it is vital that appraisers stay up to date on hybrid appraisals. Here are some resources to help ensure that appraisers are receiving valuable information:
- Appraisers can learn more about bifurcated/hybrid appraisals in AI’s new course, “Desktop Appraisals (Bifurcated, Hybrid) and Evaluations,” which will premiere Oct. 19. The seminar will review the expectations of alternative appraisal services, potential uses, appraisal standard implications, scope of work and liability concerns as it applies to residential and commercial assignments.
- One of the presentations at the 2019 Appraisal Institute Annual Conference, The New Normal in Residential Appraisal, focused on hybrids, bifurcation and contract bias.
There are a range of services that can be provided by qualified appraisers. Users of appraisal services are advised to understand the differences in scope of work and related nuances that may become a “new normal” for parts of the mortgage industry.
The Appraisal Institute is unaware of any data that verifiably tracks use of hybrid appraisals, but they do seem to be increasingly accepted by many clients, anecdotally speaking. Whether this is a good thing or a bad thing is another question. The Appraisal Institute continues to promote so-called full or traditional appraisals as the gold standard of real estate valuation. As trained experts, appraisers’ ability to conduct an interior inspection only adds to the value of their services.
For those of you who are familiar with the Appraisal Institute’s myriad benefits, the Verisite app helps corroborate the validity of owner-supplied photographs. In some situations, appraisers are able to use drones to assist in getting a 360-degree view of the property being appraised.
While there is a lot of uncertainty in the valuation profession, the Appraisal Institute still believes that a traditional residential appraisal with a full inspection by highly-trained Designated Members is the gold standard of security for the banking system and the parties involved in the transaction.
Learn more about hybrid appraisals by using the organization’s Find an Appraiser directory.