What is the difference between a desktop appraisal and a full appraisal?

Whether anyone visits the property. A full appraisal involves an interior and exterior inspection by a licensed appraiser; a desktop appraisal is completed from MLS data, public records and photographs without a site visit. Both are performed by a licensed appraiser and both produce a signed report — the desktop version simply rests on data the appraiser could not verify in person.

Can I choose which appraisal type I get?

Generally no. The loan product and the automated underwriting decision determine what is acceptable, and the lender orders accordingly. What you can do is ask up front which one your file is likely to get, because it affects both timeline and cost — and if the answer is a full appraisal, that is two weeks you should build into the contract.

Is a desktop appraisal less accurate?

It carries more risk of being wrong in a specific way: it cannot see condition. A property that has been neglected inside, or renovated beyond what the records show, is exactly where a desktop valuation misses. On a uniform subdivision of similar houses, the gap between desktop and full is usually small. On an unusual or heavily altered property it can be large.

What is an appraisal waiver?

Approval to close without any appraisal at all, offered by the agency automated underwriting systems on some low-risk files — typically strong credit, low loan-to-value, and a property the model has good data on. It saves the fee and the wait entirely. It is offered rather than requested, and it can be withdrawn if the file changes.

Why did my lender order a second appraisal?

Usually because the first came in low and the file needs review, or because the loan type requires two — some jumbo and non-QM products do. It can also happen when the first appraiser's work is questioned in review. If the second is being ordered after a low value, ask whether a reconsideration of value is available first; it is faster and cheaper than a fresh appraisal.

Who pays for the appraisal?

The borrower, almost always, and typically up front rather than at closing — appraisers are paid for the work regardless of whether the loan funds. It appears on the Loan Estimate as a lender-selected service you cannot shop for.

Appraisal types compared

Six kinds of property valuation are in common use, and they differ mainly in one thing: how much of the property anyone actually looked at. That drives the cost, the turnaround, and whether a lender will accept it — a full appraisal takes one to two weeks and runs $500 to $800; a desktop appraisal often comes back in days for half that, because nobody visits.

Appraisal types by inspection, cost, turnaround and acceptance
Type	Inspection	Cost	Turnaround	Typically accepted for
Full appraisalForm 1004 / URAR	Interior and exterior, in person	$500–$800, more for complex or rural property	About 1–2 weeks, longer when appraisers are busy	Everywhere. The default, and the fallback whenever anything else is declined
Drive-by appraisalExterior-only, Form 2055	Exterior only, from the street	Roughly $300–$500	Several days to a week	Some refinances and lower-risk loans; rarely a purchase
Desktop appraisalForm 1004 Desktop	None — MLS, public records and photographs	Roughly $200–$400	Often 1–3 days	Certain agency loans at low loan-to-value, when the file qualifies
Hybrid appraisalBifurcated	A third party inspects; the appraiser never visits	Roughly $300–$500	Under a week, gated by scheduling the inspection	Limited and product-specific; more common in servicing than origination
Automated valuation modelAVM	None. No appraiser involved at all	Free to a few dollars	Instant	Portfolio and HELOC decisions, appraisal waivers, internal review
Broker price opinionBPO	Usually exterior, sometimes interior	Roughly $50–$150	Days	Not for lending in most cases. Servicing, REO and short sales

Costs and turnarounds are broad ranges and vary considerably by market, property complexity and how busy local appraisers are. Acceptance is set by the loan product and the automated underwriting decision, not by preference.

The real distinction is what nobody saw

Every valuation on this list uses the same underlying method — find comparable sales, adjust them toward the subject, reconcile. What separates them is the quality of the information about the subject itself.

A full appraisal has everything: the appraiser has stood in the kitchen. A drive-by has the exterior and has to take the interior on faith from records and listing photos. A desktop appraisal has no first-hand observation at all. A hybrid splits the difference — someone inspects, but not the person forming the opinion.

That matters most where records and reality diverge. On a subdivision of near-identical houses built in the same decade, a desktop appraisal and a full appraisal will usually land close, because the data describes the property well. On a house that has been gutted and rebuilt inside, or one that has been quietly deteriorating for fifteen years, the records describe a property that no longer exists — and only an inspection catches it.

The two at the bottom of the table are different in kind rather than degree. An AVM is a statistical model with no appraiser involved; it is what sits behind the estimate on a property portal, and it is used in lending mainly for portfolio monitoring, HELOC decisions and waiver eligibility. A broker price opinion is prepared by a real estate agent rather than a licensed appraiser, which is why it is generally not acceptable for origination and shows up instead in servicing, REO and short sale work.

What this means for a purchase timeline

The practical consequence is scheduling. If your file needs a full appraisal, you are looking at one to two weeks from order to report, and longer when local appraisers are backed up — a contract written on a 21-day financing contingency has very little slack in it.

If the file qualifies for a desktop appraisal or an outright waiver, the same step takes days or disappears entirely. That is worth knowing before you negotiate the timeline rather than after, and it is a reasonable question to put to a lender during pre-approval: on a file like mine, what does the appraisal step usually look like?

You do not choose. The product and the underwriting decision do, and the lender orders accordingly. But knowing which outcome is likely lets you write a contract you can actually perform on.

One cost note: the appraisal fee is a lender-selected service, which means it is one of the charges at closing you genuinely cannot shop for. The closing cost calculator tags every line by what you can and cannot do something about.

And if you want to form your own view of value before the report arrives — or sanity-check one that has — the desktop appraisal calculator builds an adjustment grid the way an appraiser would, and the ARV calculator gives a faster answer as a range.

Frequently asked questions

What is the difference between a desktop appraisal and a full appraisal?: Whether anyone visits the property. A full appraisal involves an interior and exterior inspection by a licensed appraiser; a desktop appraisal is completed from MLS data, public records and photographs without a site visit. Both are performed by a licensed appraiser and both produce a signed report — the desktop version simply rests on data the appraiser could not verify in person.
Can I choose which appraisal type I get?: Generally no. The loan product and the automated underwriting decision determine what is acceptable, and the lender orders accordingly. What you can do is ask up front which one your file is likely to get, because it affects both timeline and cost — and if the answer is a full appraisal, that is two weeks you should build into the contract.
Is a desktop appraisal less accurate?: It carries more risk of being wrong in a specific way: it cannot see condition. A property that has been neglected inside, or renovated beyond what the records show, is exactly where a desktop valuation misses. On a uniform subdivision of similar houses, the gap between desktop and full is usually small. On an unusual or heavily altered property it can be large.
What is an appraisal waiver?: Approval to close without any appraisal at all, offered by the agency automated underwriting systems on some low-risk files — typically strong credit, low loan-to-value, and a property the model has good data on. It saves the fee and the wait entirely. It is offered rather than requested, and it can be withdrawn if the file changes.
Why did my lender order a second appraisal?: Usually because the first came in low and the file needs review, or because the loan type requires two — some jumbo and non-QM products do. It can also happen when the first appraiser's work is questioned in review. If the second is being ordered after a low value, ask whether a reconsideration of value is available first; it is faster and cheaper than a fresh appraisal.
Who pays for the appraisal?: The borrower, almost always, and typically up front rather than at closing — appraisers are paid for the work regardless of whether the loan funds. It appears on the Loan Estimate as a lender-selected service you cannot shop for.

General information, not advice about a specific transaction. Which valuation a lender will accept depends on the loan product, the automated underwriting decision and that lender’s own overlays. Ask your lender what applies to your file.