A hybrid appraisal, also known as a Fannie Mae 1004 Hybrid or Freddie Mac 70H, represents a new wave in the real estate industry. It's an innovative approach to property valuation that combines the traditional full appraisal methodology with modern, data-driven techniques. It involves a licensed appraiser utilizing a third-party property inspector to collect on-site data, such as interior and exterior property photos, measurements, and condition details. The appraiser then combines this information with their own market analysis and desktop valuation to deliver an accurate property value.
The purpose of a hybrid appraisal is to streamline the property valuation process. The approach is designed to provide a quick and efficient valuation, typically used for refinance transactions, home equity lines of credit, portfolio valuation, or situations where a full appraisal isn't necessary.
The fees for hybrid appraisals are generally lower than for full appraisals. While the cost may vary depending on the market and property type, you can typically expect to pay around 50-75% of the cost of a full appraisal.
Hybrid appraisals are not a one-size-fits-all solution. They work best for conventional properties in stable markets and may not be suitable for unique properties or volatile markets. Consider your specific transaction needs, time constraints, and the complexity of your property when deciding if a hybrid appraisal is right for you.
True Footage embraces hybrid appraisals as part of our commitment to delivering value, speed, and accuracy in our property valuation services. Our process is in line with guidelines established by key industry entities, such as the Appraisal Institute and the National Association of Realtors. We maintain a high standard for third-party inspectors and uphold rigorous quality control measures to ensure the delivery of reliable appraisals.
Blaine Feyen is the Head of Community at True Footage. Born and raised in Michigan, Blaine has been in the real estate and related industries for over 30 years. Buying his first duplex at 18, Blaine has been a Realtor, Lender, Investor, Builder, and 20+ year Appraiser. Blaine built and sold three appraisal firms over the years, and has coached many other Appraisers in building their companies as well. Blaine holds a fifth-degree black belt in Aikido and spends his free time doing Brazilian Jiu-Jitsu, riding motorcycles, recording podcasts, and writing.