How much lower is a drive-by appraisal?

[vanoastsj]

I recently had a drive-by appraisal done on my home that came back @ $110,000. How much lower is a drive-by appraisal (generally speaking) compared to a full appraisal? My home has been completely remodeled on the inside (granite counter tops, new kitchen, new bathroom, hardwood floors, new carpet, etc.)

Thank you!

 

[Michigan CG]

Your lender is trying to save on average about $100-150 by ordering a "drive-by" vs a "full" appraisal.

The question you have for your lender is why they would think this to be necessary instead of ordering a traditional appraisal.

Personally I charge the same for both reports as there is more liability for a drive by.

 

[vanoastsj]

Thanks for the reply. I guess I need to rephrase my question. :icon_lol:

I would like to have the house appraise for $120,000 and the drive-by came in at $110,000. Is it possible for the full appraisal to come back $10,000 higher and would it be worth spending the extra money to have the full appraisal performed?

Thanks again!

 

[Pilgrum]

I charge the same for a 'Drive-By' as I do for a 1004.
Increased liability for a 'Drive-By'. More chance of discontented clients and borrowers.

 

[RSW]

Absolutely! That does not mean that the appraised value will automatically be higher but it does give the appraiser a better understanding of what he/she is appraising. The appraiser that did the driveby should have adequate information about the interior of your home. Most times, that is not available. It has to come from a disinterested party.

 

[Mountain Man]

Thanks for the reply. I guess I need to rephrase my question. :icon_lol:

I would like to have the house appraise for $120,000 and the drive-by came in at $110,000. Is it possible for the full appraisal to come back $10,000 higher and would it be worth spending the extra money to have the full appraisal performed?

Thanks again!

There is no way to answer that question without actually ordering a full appraisal. An appraiser, and strangers on line, can't answer such without knowing the market or having data to support an opinion.

 

[Mr Rex]

I would suggest that if your lender tries to pass off the cost of a new interior appraisal on to you that you kick them to the curb ASAP as they are found guilty of trying to save themselves money at your expense. If this is the bank with your deposits, more shame on them.

 

[JTip]

I just completed a drive-by on a house two weeks ago and received an interior for the same property/same client last week.

I came in 11% higher after the interior inspection.

So the answer to you question is ....... maybe, maybe not.

 

[cdanj]

Thanks for the reply. I guess I need to rephrase my question. :icon_lol:

I would like to have the house appraise for $120,000 and the drive-by came in at $110,000. Is it possible for the full appraisal to come back $10,000 higher and would it be worth spending the extra money to have the full appraisal performed?

Thanks again!

The answer to your question is not so simple.
But the simple answer is this:
If your house looks very updated outside (new siding, landscaping) and is not updated inside(old kitchen, baths, flooring) the value may be less if you pay for an interior.
If your home has surprising updates inside or is larger than is listed on the tax records or MLS and interior appraisal may indeed come in higher.

 

[sail143]

The drive-by could be correct. Your need is not the appraiser's command. Without specific information as to upgrading and condition it is reasonable for the appraiser to conclude at the lower end of the value range.