HELOC Appraisal — where do they get values for virtual appraisal?

Question

In the process of applying for HELOC, bank uses a virtual appraisal. We can then pay for a full walk through appraisal if we’re not satisfied.

But looking to understand what values/comps they use for a virtual appraisal to be able to anticipate their numbers. Can anyone point me in the right direction?

Assuming they don’t use Zillow. 😏🙃

Andrew Postell · Answer

@Allie Dattilio this is going to depend heavily on the bank.  I have worked with banks that just use the tax value or a full appraisal.  So if you are good with the taxable value as reported by the county...then no need to do anything else.  Since each bank is responsible for lending it's own HELOC money each bank could underwrite it differently.  Most do have some type of "desktop" appraisal program.  You probably won't ever get to see the exact program and how they formulate it but if you do end up ordering a full appraisal then you will be doing a "sales comparison" type of appraisal most likely.  Hope this helps!

Justin Kane · Answer

what everyone above has said they use localized comps to estimate your value they then take the detailed photos of your home supplied and adjust depending on the level of upgrades and repairs comparable to the comps they pulled. what you have to watch out for is if they never ask for photos of your upgrades that may decrease your value as they will just assume its not upgraded

Nick G. · Answer

@Allie Dattilio

My personal experience with BOA looked like they were just using previous sales comps.

The house I bought was a foreclosure and the computer was valuing a little higher than the last sale price. My purchase price was 236k, computer valued at 260k, walkthrough appraisal came back at 380k. Then I sold 6 months later for 421k.

I do think it varies per bank on how they weigh in on their underwriting data, I’m sure one of the lenders or underwriters here can chime in.

Sam Shueh · Answer

Drive by which serves the purposed on a HELOC.

Melvin List · Answer

@Allie Dattilio Every Line of Credit I have used I have been happy with the online appraisal.  They pull comps from your area that are comparable to the size and type of property you own.