what is Desktop Valuation

**Desktop valuation** is a property valuation method where the appraiser estimates a property's value from a desk, without physically inspecting the property. This method relies on third-party data, such as tax records, multiple listing service data, and previous appraisals. Here's a detailed analysis of desktop valuation:

1. **Advantages**:
- **Cost-Effectiveness**: Desktop valuation is often cheaper than traditional appraisal methods because it eliminates the need for an in-person inspection, which can reduce the overall valuation cost.
- **Time Efficiency**: It is a quicker process, potentially allowing for a valuation to be completed in a few minutes, which can be beneficial for lenders processing mortgage applications.
- **Data-Driven Accuracy**: In areas with abundant data, desktop valuation can be accurate and reliable, providing a reasonable estimate of a property's value.
2. **Disadvantages**:
- **Limited Reliability**: The accuracy of a desktop valuation can be less reliable than a traditional appraisal, as it relies on available data and may not account for unique features or conditions of the property.
- **Data Incompleteness**: In areas with limited data or for specific types of properties (e.g., rural or unique structures), a desktop valuation may not be feasible or may produce inaccurate results.
- **Lender Acceptance**: Not all lenders offer or accept desktop valuations, and their reliability may be questioned by some lenders, especially for high-risk loans.
3. **Use Cases**: Desktop valuation is typically used for low-risk loans, such as those with a loan-to-value ratio below 80%, and for properties that are straightforward and well-documented. It can also be used for valuing newly built properties or unfinished structures based on developer-provided data.

In conclusion, while desktop valuation offers cost savings and time efficiency, its reliability is contingent upon the availability and quality of data. It is essential for homeowners and lenders to understand the limitations of this method and its potential impact on loan approvals and property values.