Final answer:
A drive-by appraisal is when an appraiser completes a property appraisal report without entering the property, often used in low-risk financial situations or when an interior inspection would not significantly impact the property's value.
Step-by-step explanation:
When an appraiser does not enter a property but still completes an appraisal report, it is known as a drive-by appraisal. This type of appraisal may occur under specific circumstances where an inside assessment is not possible or required. For instance, drive-by appraisals are sometimes used in situations where a full appraisal is not necessary, such as for home equity lines of credit, refinancing with lower risks, or when an interior inspection might not change the value of the property significantly. However, it is important to note that a drive-by appraisal provides a less comprehensive evaluation of the property than a full appraisal which includes an interior inspection.