A desktop appraisal is a limited-scope valuation in which a licensed appraiser develops an opinion of value using available data sources such as MLS records, public records and prior appraisal history, without physically inspecting the property. The appraiser relies on existing information rather than firsthand observation.
Fannie Mae and Freddie Mac expanded acceptance of desktop appraisals for eligible transactions following guidance introduced during and after the COVID-19 pandemic, making them a recognized option for certain low-risk refinance and purchase scenarios. Eligibility depends on property type, loan purpose and borrower profile.
For loan originators and valuation companies, desktop appraisals can accelerate timelines and reduce costs, but they are not appropriate for all transactions. Appraisers should clearly identify data limitations and scope of work within the report. When property condition, market volatility or data reliability is in question, a traditional appraisal with physical inspection remains the stronger choice.