What’s the Difference Between a Desktop Appraisal, a Hybrid Appraisal, & BPO?

If you need a home appraisal, you may have run into a couple of challenges with traditional appraisers. Two of the most common challenges include:

• Price: A traditional house appraisal can be quite costly. It could cost as much as $1,200 depending on the appraiser and the details of the home. 
• Availability: It could take weeks to get a traditional appraisal done. If you’re looking to close on a deal in the very near term, you may not have weeks for an appraisal. 

The good news is that you may not need a traditional appraisal. Some other common options like hybrid appraisals, broker pricing options, and desktop appraisals could be your solution to these common problems. Here’s what you need to know about these three options.  

What Is a Hybrid Appraisal?

A hybrid appraisal is a hybrid of a traditional appraisal and a digital appraisal. Hybrid appraisals are typically done by licensed appraisers who use online data to learn about the home. That data will often include online listings, images of the property, tax documentation, and more. 

However, the online information only forms part of the picture for the appraiser. In a hybrid appraisal, there’s on-site work that needs to be done too. The appraiser will typically visit the property or hire someone to do so. Once at the property, the appraiser or their hired help will often take measurements of rooms, verify the condition of the property, and look for factors that may play a role in the price of the property. 

However, these home visits are usually pretty short. After all, the appraiser has already gathered quite a bit of information online. 

Pros and Cons of a Hybrid Appraisal

Hybrid appraisal pros:

• Cost: Hybrid appraisals are typically less expensive than traditional appraisals. In fact, most hybrid appraisals cost about half as much as a typical traditional appraisal. 
• Time: When you’re in a time crunch, you may not have weeks to wait on a traditional appraisal. If that’s the case, a hybrid appraisal may be the next best option. These appraisals usually only take about 50% of the time of their traditional counterparts. 
• Licensed Appraiser: Hybrid appraisals are performed by licensed appraisers. Although the hybrid nature of the appraisal may lead to some inaccuracies, the overall appraisal will be a strong product. 

Hybrid appraisal cons:

• Accuracy: Hybrid appraisals aren’t quite as accurate as traditional appraisals, as they’re performed faster and with less information than their traditional counterparts. 
• Trust: It’s important that you choose a trusted appraiser with a strong name within your community. After all, hybrid appraisals give the appraiser the option to cut corners. If they cut too many corners, the appraised value of the property could be inaccurate.

What Is a BPO (Broker Pricing Option)?

A broker pricing option, or BPO, works just like a hybrid appraisal. The key difference is that with a BPO, the work isn’t done by a licensed appraiser. Instead, a real estate agent does the work involved in a BPO. 

As is the case with a hybrid appraisal, the licensed real estate agent will search for information about the property online. Once the online search is concluded, the real estate agent or hired help will go to the property in question to fill in the gaps left by any information that wasn’t available online. 

Pros and Cons of a BPO

BPO Pros:

• Cost: BPOs are often significantly less expensive than traditional appraisals. They can even come at a lower cost when compared to a hybrid appraisal, as they’re typically performed by licensed real estate agents rather than licensed appraisers. 
• Speed: BPOs can be done pretty quickly. The time it takes to complete a BPO is comparable to the time it takes to complete a hybrid appraisal, which is about half that of a traditional appraisal. 

BPO Cons:  

• Accuracy: As is the case with a hybrid appraisal, real estate agents rely heavily on online information when they perform a BPO. That could be an issue since online information may be inaccurate. If that’s the case, the entire appraisal can come with accuracy issues. 
• Trust: As is the case with a hybrid appraisal, BPOs leave the option for excessive corners to be cut, which could limit the end value of the appraisal.     

What Is a Desktop Appraisal?

A desktop appraisal is just what its name suggests. These appraisals are either done by a licensed appraiser or a licensed realtor. However, unlike the other appraisal types mentioned above, a desktop appraisal is done 100% online. 

Professionals who perform desktop appraisals gather information from: 

• County records;
• tax records; and 
• online listings and photos. 

The appraiser in the case of a desktop appraisal will never step a foot on the property in question. As such, this is often viewed as the least accurate option. However, it may be the most viable appraisal option if you’re in a time crunch. 

Pros and Cons of a Desktop Appraisal

Desktop Appraisal Pros:

• Speed: Since desktop appraisals can be done without ever stepping foot on the property in question, they tend to offer the fastest turnaround. You could feasibly receive a desktop appraisal far faster than a hybrid appraisal or BPO, making it a compelling option if speed is a major factor. 
• Price: Since there’s no need to travel to a physical location and desktop appraisals typically take less time to complete, they’re also typically the lowest-cost option. 

Desktop Appraisal Cons:

• Accuracy: Desktop appraisals are done 100% online. Unfortunately, online information isn’t always the most accurate information. It’s common for online data to be outdated, and significant factors that may play into the cost of a property can be missed. As such, this is the least accurate option listed. 
• Viability: Because appraisers and real estate agents who perform desktop appraisals never step foot on the property they appraise, some lenders and other parties may not accept them as valid appraisals. 

Desktop Appraisal Cost

Desktop appraisals typically cost between $75 and $250, depending on the complexity of the property, the data available, and the scope of work defined by the appraisal management company or lender.

Because desktop appraisals are completed remotely without a physical inspection, they generally cost less than hybrid or traditional appraisals. They are often used for lower-risk lending scenarios, portfolio evaluations, or as part of desktop underwriter review workflows. However, appraisals must still comply with industry standards, including clear documentation of the data collected and sources used to support the opinion of value.

What’s the Difference Between Hybrid and Desktop Appraisals?

The difference between hybrid and desktop appraisals comes down to how data is gathered and who performs the inspection of the subject property.

Hybrid appraisals combine remote research with a limited in-person inspection. A certified or licensed appraiser uses available data (like MLS listings, tax records, and photos), while a third-party data collector performs a brief physical inspection. The appraiser then completes the valuation using a hybrid appraisal form designed for this alternative valuation process.

Desktop appraisals, on the other hand, are conducted entirely remotely. The appraiser or real estate agent reviews third-party data sources, including multiple listing services and public records, without ever visiting the property. While fast and cost-effective, a desktop appraisal is a property evaluation based solely on documentation — which can lead to less accurate results in certain transactions.

Both options became more common during COVID-19 and are now supported in certain cases by Fannie Mae and Freddie Mac. Still, for more complex assignments or loans requiring a full inspection, the traditional appraisal process remains the standard.

The Bottom Line

The bottom line is that, if you need an appraisal, costly and time-consuming traditional appraisals aren’t your only option. If you’re in a time crunch, or you’d like to save money when and where possible, consider taking advantage of a hybrid appraisal, BPO, or desktop appraisal. 

Frequently Asked Questions

Are desktop and hybrid appraisals accepted by lenders?

Yes, but it depends on the loan type and the lender. Fannie Mae and Freddie Mac allow desktop and hybrid appraisals under specific conditions. However, many lenders still prefer a traditional appraisal when there’s limited data or the transaction involves a high loan amount or unique property features.

Do hybrid appraisals require a floor plan?

In many cases, yes. A hybrid appraisal may require a basic floor plan to be included with the data collected during the third-party inspection, especially if the layout affects the property’s valuation. This is part of ensuring the final opinion of value is credible and compliant with appraisal standards.

Can a desktop appraisal be used for refinancing your mortgage?

Sometimes. Desktop appraisals may be allowed when refinancing your mortgage through programs that support alternative valuation products. But for a conventional loan or cash-out refinance, lenders often require a full or hybrid appraisal for a more accurate assessment of the property value.

What kinds of assignments are desktop appraisals best for?

Desktop appraisals are best for low-risk residential assignments, portfolio valuation services, or secondary reviews where a physical inspection of the property is not critical. They’re also helpful when an appraiser’s workload or geographic limits make in-person work inefficient.

Is data collection done by the same person who signs the appraisal?

Not always. In hybrid appraisals, a third-party inspector may collect data and complete the physical inspection, while the licensed appraiser signs off after analyzing all available data. In desktop appraisals, everything is conducted and signed by the same real estate appraiser or licensed agent, but without setting foot on the property.