A desktop appraisal is an appraisal completed by a licensed appraiser without a physical site inspection. The appraiser uses public records, MLS data, tax records, and any available photos or data to form a value opinion. It is not the same as an appraisal waiver: a waiver involves no appraiser at all, while a desktop still produces a formal appraisal report.
When AUS Offers a Desktop Appraisal
DU and LPA may offer a desktop appraisal as an alternative to a traditional appraisal on qualifying transactions. The offer is data-driven: the GSE system evaluates whether sufficient property data exists to support a remote opinion of value. If offered, the lender can proceed with the desktop rather than a standard appraisal. The desktop option is presented in the AUS findings, not available on demand.
Form and Process
Fannie Mae uses Form 1004Desktop; Freddie Mac uses Form 70D. The process is the same as a standard appraisal for ordering, assignment, and AMC involvement, except the appraiser does not visit the property. The appraiser still completes all required sections of the form, analyzes comparables, and certifies the value opinion as they would on a traditional appraisal.
Desktop vs Waiver vs Traditional
- ✦Traditional appraisal: licensed appraiser visits property in person; most thorough; required when neither waiver nor desktop is available
- ✦Desktop appraisal: licensed appraiser works remotely from public data; faster and less expensive than traditional; still produces a formal report
- ✦Appraisal waiver: no appraiser involved; AUS accepts value based on its own data models; fastest and cheapest; available only on qualifying transactions with strong data
Limitations
Desktop appraisals are not available for all property types or loan scenarios. Manufactured homes, properties with limited comparable data, and certain rural properties are typically ineligible. A desktop cannot detect condition issues the way a physical inspection can. Borrowers should still consider a home inspection separately.
Aria can explain the documentation requirements for desktop appraisals and which property types are likely to qualify for the option. Ask at vicariointel.com.
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