In todays real estate market, many lenders are requiring a second opinion of value for your particular property. One type of second opinion is a desk review appraisal.
The property that was appraised is analyzed by another appraiser to make sure the value used is logical and properly supported. That desk review appraisal may include comments and critiques to which the original appraiser must respond.
Your mortgage professional should be able to let you know if a desk review will be required for your specific loan at the time of application.
It is important to understand that desk reviews are a normal part of the mortgage process and are used to help evaluate if the comparable properties used to determine the value of your home are the best comps available.
A desk review usually does not slow down the loan process or underwriting time by too much if at all. Desk reviews can usually be completed within 24-48 hours depending upon the findings. Therefore, if the desk review is ordered early in the process you will not normally see any delay whatsoever and you may not even know that a desk review appraisal was ever even done. However, if the desk review appraisal is not requested until right before closing, you could see a slight delay in setting up your closing date of your loan.
A desk review appraisal is especially necessary in this day and age with all of the instability in housing values due to an increasing number of foreclosures happening across the country. Desk reviews can help to verify the accuracy of an appraisal, especially since an appraisal is only a an estimate or opinion of value by the appraiser. By obtaining a desk review the lender is able to receive another opinion as to the actual value of a specific property. A desk review can be requested or required for many reasons. A few examples of these reasons could be, the value of the property seems excessive for that area, a random appraisal audit or review, problems with a specific appraiser's work in the past, and some lenders may require a desk review on every appraisal.
A BPO, or broker price opinion, is an increasingly popular alternative to a desk review appraisal