Availability of the property for inspection

When the property is not available for inspection, as would be the case if there had been a theft or a casualty loss such as a fire or flood, there is no difference between the process followed by the traditional, land-based appraiser (who makes use of photographs and verbal and written descriptions from the client) and that followed by the online, virtual appraiser (who follows the same process, only making use of digital in lieu of print images.)

Online appraisals are also an acceptable method of valuation in any scenario in which the use of photographs have traditionally been an accepted method of obtaining value conclusions such as in moving damage claims for certain types of property. In such scenarios, all appraisal intended uses that have long been valid for the traditional appraiser who makes use of photogprahs in lieu of a hands-on inspection continue to be valid for the online appraiser as well.

Property that is otherwise available for inspection should only be appraised by an online appraiser if the type of property qualifies for being appraised without a personal inspection by the appraiser, and if 1) the needs of the client and third party users, and 2) the intended use of the appraisal report permit an appraisal being done without a personal inspection by the appraiser.

Potential users

Because they are based completely on non-verifiable, client-provided information, there is normally a restriction as to whom can make use of online appraisals done via an appraisal management company. Most often, possible intended users are restricted to the client to the exclusion of any third party user. An example would be an appraisal done for a client wishing assistance in setting an item's selling price.

However, when online appraisals are obtained through a process which involves direct contact and dialogue between client and online appraiser, possible users could also include third parties such as insurance and damage claims adjusters, or parties in litigation.

Refer to the flow chart.