Newz: Drivebys, Foreclosures, Hybrids?, ASB Q and As
April 18, 2025
What’s in This Newsletter (In Order, Scroll Down)
- LIA ad: Appraisal Used in Divorce Case—Now What?
- What is a Drive-By Appraisal?
- Contemporary Architect’s Downtown Santa Barbara Home Could Set a Condo Price Record
- Top 10 U.S. Housing Markets with the Most Foreclosure Starts in March 2025
- Hybrid Appraisals – Flawed Data or Flawed Agenda?
- New ASB Q&As
- Mortgage applications decreased 8.5 percent from one week earlier
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What is a Drive-By Appraisal?
Excerpts: This method bypasses traditional in-person appraisal methods and has grown in relevance for situations like refinancing or low-risk loans where a full interior inspection may not be necessary.
In addition to observing and evaluating the property’s exterior condition, appraisers will also assess the surrounding neighborhood, use MLS listings for home interior information, and evaluate comparable sales data to estimate property value.
Also known as “exterior-only appraisals” or “2055 appraisals,” this approach is often chosen when a full appraisal isn’t required, such as for low-risk lending scenarios or when lenders have sufficient market data to support a valuation without an interior inspection.
They are also used in situations like foreclosure when interior inspections are not possible.
Topics
- How Does a Drive-By Appraisal Work?
- Steps to Conducting Drive-By Appraisals
- Situations When a Drive-By Appraisal is Used
- Limitations of Drive-By Appraisals
- Drive-By Appraisals and Industry Standards
To read more, Click Here
My comments: Definitely the most comprehensive and understandable article on drive-bys I have read. I did many drive-bys in the 80s and 90s for lenders. I finally quit doing them on 2-4 unit properties with little info available. Also, when appraising large Victorians I did not know what had changed since 1910. Permit histories in my city are very limited prior to 1950.
I did a lot of foreclosure drive-bys when prices were dropping. I did full appraisals with interior inspections after they were foreclosed.
My most difficult drive-by was a house that was completely “trashed” after the death of the owner by a young relative drug user. It had been sold after renovation and I had no access. I interviewed relatives, neighbors, etc. to try to find out what it was like on the date of death. I always ask the estate trustee to get me access to the house before any changes are made if possible.
BE CAREFUL. DO NOT UNDERBID ON DRIVEBYS.
TOO MUCH UNCERTAINTY ABOUT THE INTERIOR CONDITIONS.