What is one risk of conducting an appraisal without physical inspection?

Conducting an appraisal without a physical inspection poses significant risks, particularly in terms of accurately assessing the property's condition. This critical aspect of appraisal directly influences the valuation process.

When an appraiser does not physically inspect the property, they may overlook various factors that can materially affect the property's value, such as structural issues, the condition of the roof, plumbing, and electrical systems, as well as any renovations or damages that are not documented elsewhere. Each of these elements can carry substantial weight in determining the overall market value of the property.

Inaccurate value estimates could arise from a lack of firsthand knowledge about these conditions, potentially leading to financial implications for buyers, sellers, or lenders relying on the appraisal. Thus, the absence of a physical inspection increases the risk of making a misinformed decision based on incomplete information.