Property Valuation
What is a 'drive-by appraisal' (exterior-only appraisal) and when is it used in Delaware?
AAn appraisal based entirely on Google Street View images
BAn appraisal where the appraiser inspects only the exterior of the property — typically used for refinances where a full interior inspection is not required, or in limited circumstances with sufficient public data✓ Correct
CAn appraisal method where the appraiser drives through a neighborhood to determine values
DA preliminary valuation done before a full appraisal is ordered
Explanation
A drive-by (exterior-only) appraisal limits inspection to the property's exterior and relies on public records and MLS data for interior information. Lenders may use them for low-risk refinances (low LTV, strong credit). They are less accurate than full interior appraisals and not appropriate for purchase loans or high-risk transactions. GSE guidelines govern when they are acceptable.
Related Delaware Property Valuation Questions
- What is 'insurable value' in the context of Delaware real estate?
- What is 'absorption rate' in Delaware real estate market analysis?
- What is the 'neighborhood life cycle' theory in Delaware real estate valuation?
- What is 'overimprovement' in Delaware real estate appraisal?
- What is 'market rent' versus 'contract rent' in a Delaware lease analysis?
- What is an 'automated valuation model' (AVM) in Delaware?
- What is 'reversion value' in a Delaware income property DCF analysis?
- What is a 'land residual technique' in Delaware real estate appraisal?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →