Property Valuation
What is a 'drive-by appraisal' (exterior-only appraisal) and when is it used?
AA full appraisal conducted while driving through the neighborhood
BA limited appraisal based on exterior inspection and public records without interior access; typically used for refinances with low LTV or low-risk transactions✓ Correct
CAn appraisal performed through drive-by MLS photos only
DA real-time market value estimate provided by automated valuation models
Explanation
A drive-by (or exterior-only) appraisal involves inspecting only the exterior of a property and relies on public records, tax information, and MLS data for interior details. It is used in lower-risk situations—refinances at conservative LTV ratios, value confirmation, or portfolio reviews. Lenders may request drive-by appraisals when a full interior appraisal is not warranted by the transaction risk level.
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