What is a Drive-By Appraisal?

What is a Drive-By Appraisal?

A “drive-by appraisal,” sometimes called an “exterior-only appraisal,” is a type of property valuation in which the appraiser evaluates a home primarily by observing its exterior—often literally driving by—without conducting a thorough inspection of the interior. The appraiser may also rely on public records, past sales data, and information about the neighborhood or market to estimate the property’s value. This streamlined approach is typically used when a full interior inspection is not required, such as in certain refinancing scenarios, low-risk loans, or when the lender wants to reduce appraisal costs and time. However, it can be less precise than a full appraisal because the appraiser does not have an opportunity to assess the home’s interior condition or recent renovations.