Hybrid and Desktop Appraisals

Louisiana REALTORS • June 3, 2022

The Intersection of Louisiana Real Estate Law and the Technological Evolution of Appraisals

Written By: Kristin Oglesby 

In the ever-evolving technological era two types of appraisals have emerged: hybrid appraisals and desktop appraisals—appraisal methods that intend to utilize technology to make the appraisal process faster and more efficient.


A hybrid appraisal involves two people in the appraisal process, and results in a type of report in which a third party (usually another appraiser or a real estate agent) completes the in-person review of both the interior and exterior of the subject property, after which the third party reports his or her findings to the appraiser. The appraiser then gathers data necessary to complete the appraisal and render an opinion on the property’s value.


Though a desktop appraisal utilizes technology much like a hybrid appraisal, it is typically done exclusively in a remote fashion such that no physical inspection of the property occurs. To render a valuation using the desktop method, appraisers use all available data on a property to formulate their opinion of value.


Because both methods involve the collection of data to render the appraisal, companies who do this type of work are looking to real estate licensees to aid in data collection.


This leads to a host of questions for Louisiana real estate licensees, including whether a licensee can do this for a fee without running afoul of real estate license law or appraisal licensing law, whether the licensee can collect data on a home that the licensee is actively involved in buying or selling, what is considered data collection versus actual rendering of an appraisal, how consumers are protected, and what legal exposure data collectors have. This article addresses these specific issues in turn.


  • 1. Can a real estate licensee collect data for a hybrid or desktop appraisal?

    Short Answer:  It appears as if no violation of Louisiana law occurs if a real estate licensee — who lacks a real estate appraisal license — engages in data collection for hybrid or desktop appraisals.  However, should the real estate licensee participate in any rendering of an analysis, conclusion or opinion related to the value of the property, the licensee could be said to participating in the appraisal process which requires one to be licensed by the Louisiana Real Estate Appraisal law.


    The Louisiana Real Estate Appraisers Law provides that no person shall perform an appraisal without the appropriate state license.  The statute further provides, however, that “[n]othing in this Chapter shall preclude a licensed real estate broker or salesperson from performing a broker price opinion/comparative market analysis in the ordinary course of the practice of real estate, provided that the broker or salesperson does not represent himself as being a state licensed real estate appraiser. ” 


    It is no surprise that the statutory regime omits any reference to hybrid or desktop appraisals, as these are relatively new methods of appraising. However, the statute is very clear on what is and is not permitted by non-licensees: appraisals must be done by a licensed real estate appraiser, and all other activities are impliedly permissible. 


    An “appraisal” is statutorily defined as “means an analysis, opinion, or conclusion relating to the nature, quality, value, or utility of specified interests in, or aspects, including energy efficiency, of, identified real estate, for or in expectation of compensation. ” 


    Mere data collection certainly falls short of this definition because the hybrid or desktop data collector, who may in fact be an appraiser, will turn over the data collected to the actual appraiser for the property, who then completes the valuation on the property, and as such it is the author’s opinion that such data collection may occur without violating the Louisiana Real Estate Appraisal Law. If the data collector also participates in any rendering of an analysis, conclusion or opinion related to the value of the property, the data collector has participated in the appraisal process and is subject to Louisiana Real Estate Appraisal Law. 


    Additionally, there is no provision in the Louisiana Real Estate Law that would prohibit such data collection. Louisiana Real Estate Law regulates “real estate activity,” which is statutorily defined to include any portion of the buy/sell process.  The statute’s definition of 

    “real estate activity” focuses on actions taken in an effort to procure a sale of property, and therefore appears to exempt from the definition any data collection that is part of the appraisal process unrelated to active involvement in a buy/sell transaction. To the extent a real estate licensee — who lacks a real estate appraisal license — engages in data collection for hybrid or desktop appraisals, Louisiana law gives rise to no violation. 



  • 2. Does a conflict of interest arise if a real estate licensee collects data for a desktop or hybrid appraisal? What if the real estate licensee represents the buyer or seller collects AND collects data for the hybrid or desktop appraisal for the property that is the subject of the transaction?

    Short Answer:  Maybe or maybe not.  If a REALTOR® represents the buyer or seller in a transaction and collects data for the appraisal, he or she should disclose to all parties that he or she is collecting data that will be used in the appraisal.


    The potential for a conflict of interest arises when a real estate licensee or REALTOR® engages in data collection on a property that the individual is also assisting in the buy/sell process. A conflict of interest arises when the circumstances are such that the exercise of the requisite professional judgment is undermined.

     

    Neither the Louisiana Real Estate Appraisers Law nor the Louisiana Real Estate License Law provide mandates or guidance on potential conflicts of interest, and therefore seem to permit the licensee to collect data on a property that the licensee will then be involved as a participant in the buy/sell transaction. 


    Licensees who are also members of Louisiana REALTORS® must, however, adhere to a higher standard pursuant to the National Association of REALTORS® Code of Ethics (“Ethics Code”). REALTORS® have an obligation to each client, and each client expects that his or her interests will be served as first priority. 


    Just as acting a dual agent may present a conflict of interest, participating in the appraisal process as a data collector may run afoul of obligations owed to a buyer or seller of the same property. Any data collector would be strongly advised to disclose to his or her buy/sell client that the agent also participated in the data collection process. 


    Ethics Code Standard of Practice 11-1 provides that “[w]hen REALTORS® prepare opinions of real property value or price they must…[disclose] whether the REALTOR® has any conflicts of interest.” As discussed above, the process of data collection is separate from rendering an appraisal on the property, but extreme caution is urged, and the REALTOR® who operates in both roles should err on the side of disclosure. 


  • 3. As a licensed REALTOR®, can I be liable and required to pay damages in a lawsuit if I collect data for an appraisal?

    Short Answer:  There simply is not enough information or instances available for examination to determine the scope of what liability may exist for a real estate licensee who collects data for an appraisal.  Therefore, to minimize exposure in any potential lawsuit, it is encouraged that a real estate licensee who participates in the data collection for an appraisal make sure the arrangement with the appraiser or appraisal management company includes an indemnity clause or some form of protection for the licensee collecting and providing the data.


    Although there do not appear to have been any instances of liability against a data collector being held liable for either breach of information or use of inaccurate information, both do create potential for exposure. 


    There is less risk for liability for collecting inaccurate data in a hybrid appraisal because an individual steps foot on and inside of the property. But, in a desktop appraisal, the property never feels the physical touch of any type of inspection related to the appraisal process, and room for fraud and error grows and therefore so does the risk for liability for any real estate licensee who collects data for this type of appraisal. 


    For example, desktop appraisals will often involve photographic data collection of the interior of the property. There is always risk that the photographs provided are not accurate and therefore lead to an inaccurate appraisal. In this instance, a real estate licensee who provides the inaccurate data may face liability to the appraiser if the appraisal ends up deficient and a loss is incurred. This would be governed by whatever agreement or contract is in place by and between the real estate licensee data collector and the appraiser or appraisal management company. For example, the relationship between the appraiser and the data collector may be that of an “independent contractor.” An independent contractor is a self-employed person or entity contracted to perform work for—or provide services to—another entity as a nonemployee. These relationships are typically created pursuant to a contract or agreement where the data collector—as the independent contractor—agrees to perform a service (data collection) for the appraiser. The terms of the specific contract may state that the data collector is liable to the appraiser for any incomplete or inaccurate work. 


    Likewise, there is the possibility that data is leaked and consumer information is exposed. Fortunately, there the law does not provide that a licensee is automatically liable if this occurs. But, if sensitive data is leaked and an a loss, such as theft or disruption occurs, the person whose data was leaked may sue any party involved in the appraisal.  Depending on the circumstances of the case, this could result in a court requiring any party involved in the appraisal, including the real estate licensee who collected the data, to pay monetary damages to the person who suffered a loss because of the leak.


    Therefore, to minimize exposure in any potential lawsuit whether it be for providing inaccurate data or a leak, it is encouraged that a real estate licensee who participates in data collection for an appraisal make sure the arrangement with the appraiser or appraisal management company include an indemnity clause or some form of protection for the licensee collecting and providing the data for the appraisal.

Louisiana Residents Encouraged to Use New LDI Tools to Prepare for Hurricane Season

By Louisiana REALTORS® • June 9, 2026
From the Louisiana Department of Insurance: During a press conference today with Governor Jeff Landry, Insurance Commissioner Tim Temple announced that registration for the next round of the Louisiana Fortify Homes Program (LFHP) will open at 8 a.m. on Monday, June 1, and will include 3,000 grants. The registration period for this lottery will be open for three weeks, closing at 5 p.m. on Friday, June 19.  During the press conference, Gov. Landry signed HB 1187 by Rep. Paul Sawyer, which will allow Louisiana Citizens Property Insurance Corporation to transfer $50 million in additional Katrina bond assessment funds to the LFHP. Combined with the $30 million in funding the program will receive through taxes and fees on insurance entities, the LFHP will receive a total of $80 million this year. “By lowering overall losses, we can reduce insurance and reinsurance costs, draw more insurers into the market, motivate existing companies to write additional policies and lower insurance premiums,” said Commissioner Temple. “That is exactly what the Louisiana Fortify Homes Program is designed to do.” The list of coastal parishes that are eligible to participate is expanding to include Acadia, Jefferson Davis and Lafayette parishes. Additionally, homeowners who live in the portions of Ascension, Calcasieu, Iberia, Livingston, St. Martin, St. Tammany, Tangipahoa and Vermilion parishes that were previously not included in the program will now be eligible to participate. A map showing the full list of eligible parishes is available on FortifyHomes.La.Gov . “Louisiana is the fastest growing state in the country for Fortified roofs, and that growth is not by accident—it is the result of strong support from Governor Landry and legislators like Chairman Talbot, Chairman Firment and Representative Sawyer, targeted program design, and a clear recognition that strengthening homes is one of the most effective ways to reduce insurance losses,” said Commissioner Temple. “At the end of the day, this program is about more than just roofs. It is about protecting families, it is about strengthening communities, and it is about putting Louisiana in a stronger position—both physically and economically—to face the challenges ahead.” To participate in the lottery, homeowners must register during the June registration period. Homeowners who registered for a previous round but were not selected must register again to participate. People who register on the last day of the registration period have the same chance of being selected as those who register on the first day, so there is no need to rush to register as soon as the period opens. When registering, homeowners will need to upload their homestead exemption, insurance policy declarations page that includes wind coverage, and flood insurance declarations page if the residence is in a flood zone. Homeowners who need assistance obtaining a copy of their homestead exemption should contact their parish tax assessor. Homeowners can contact their homeowners and flood insurance companies or agents for a copy of their policy declarations page. Homeowners are required to create a profile in the LFHP system before registering for the lottery and may do so by visiting the LFHP website and clicking the Login button. Homeowners who previously created a profile may use the same one for this and future rounds. Once the lottery registration period closes, the LFHP will randomly select 3,000 participants and send email notifications to registrants about whether they were selected to participate. These selection notices will be sent via email beginning on Monday, June 22. There are several program requirements that homeowners should be aware of before registering. Those interested in the program are encouraged to review eligibility information and frequently asked questions at FortifyHomes.La.Gov to determine whether their home meets the requirements for the program. If selected to participate in the grant program, homeowners will be financially responsible for having the home evaluated by a FORTIFIED-certified Evaluator as well as costs for the roof upgrade including permits, inspections and construction costs beyond the amount of the grant The LFHP provides grants of up to $10,000 for homeowners to upgrade their roofs to standards set by the Insurance Institute for Business & Home Safety. The program helps Louisiana homeowners strengthen their roofs to better withstand hurricane-force winds.
Educating prospective homebuyers on the true cost of owning a home

How to Talk to Clients About the True Costs of Homeownership in Louisiana

By Louisiana REALTORS® • June 9, 2026
Learn how real estate agents can educate buyers about Louisiana homeownership costs, including taxes, insurance, HOA fees, and maintenance.

2026 Legislative Session Scoop - Session Wrap-up

By Louisiana REALTORS® • June 5, 2026
The 2026 Regular Legislative Session has officially adjourned, and Louisiana REALTORS® closes the session with a strong record of legislative wins, defensive victories and meaningful progress on issues that directly impact property owners, homebuyers, housing providers and real estate professionals across Louisiana. This session touched nearly every major pressure point in the real estate market: insurance affordability, transaction transparency, appraisal certainty, leasing law, property taxes, blight redevelopment, litigation costs, consumer protection and private property rights. Louisiana REALTORS® successfully advanced several major policy priorities this session, including residential wholesaling reform, vacant residential land disclosure, appraisal certainty, security deposit reform, insurance mitigation funding and redevelopment tools for blighted property. At the same time, the association helped stop or reshape proposals that would have harmed housing supply, increased practitioners' liability, or created uncertainty for property owners and housing providers. Major Wins for You and Real Estate Residential Wholesaling Reform The signature victory of the session was HB 468 by Rep. Troy Hebert , Louisiana REALTORS®’ residential wholesaling reform bill. For years, residential wholesaling operated in a gray area of Louisiana law. HB 468 creates a clear statutory framework for residential wholesaling, strengthens consumer protection, increases transparency, and gives the Louisiana Real Estate Commission meaningful enforcement authority. The bill’s conference report passed unanimously in both chambers, with votes of 94-0 in the House and 35-0 in the Senate. This is a major structural reform for Louisiana real estate law. This bill will be state law effective August 1, 2026. Please note that the law does not affect any wholesale contracts between now and the effective date. Vacant Residential Land Disclosure HB 1166, by Rep. Kim Carver, passed the Legislature and has been sent to the Governor for his signature. The bill addresses disclosure gaps in vacant residential land transactions where buyers may discover late-stage issues involving access, utilities, drainage, flood risk, prior use or other material facts. HB 1166 creates a clearer process for buyers, sellers and real estate practitioners, and should help reduce failed transactions, disputes and closing-table surprises. As new industry forms and disclosures are developed, Louisiana REALTORS® will monitor the process closely and work to ensure the final requirements are practical, clear and consistent with sound industry practice. The Louisiana Real Estate Commission will complete the forms and disclosure process, with final implementation expected to be legally required for agents beginning January 1, 2027. Appraisal Liability Protections Louisiana REALTORS® secured two important appraisal-related wins. HB 1027 also by Rep. Troy Hebert , signed as Act No. 187 , clarifies that appraisers should not be held liable for compliance with obligations that belong to other parties in the transaction. HB 300 by Rep. Neil Riser , signed as Act No. 149 , addresses appraisal thresholds for bank-owned property. Together, these measures support greater transaction certainty and fairness in the appraisal process. The pair of these measures will take effect as law on August 1, 2026. Housing & Market Stability Security Deposit Reform HB 292, by Rep. Delisha Boyd and signed by Governor Landry as Act No. 63 , creates a more workable process for addressing damage discovered at the end of a lease and provides greater flexibility through written agreements regarding security deposit timelines. The measure offers practical clarity for housing providers, tenants and property managers when property damage is identified after move-out, allowing additional time to assess damage, obtain repair estimates and document costs before final security deposit accounting is completed. By creating a clearer statutory framework, the law helps reduce disputes and ensures that both landlords and tenants have a better understanding of their rights and responsibilities. Property managers can mark August 1, 2026, on their calendars, as that is the effective date for this legislation. Protections for Victims & Landlords HB 297, by Rep. Mandie Landry and signed by Governor Landry as Act No. 64 , expands Louisiana's early lease-termination protections to include victims of stalking and cyberstalking. The law recognizes that personal safety may require a tenant to leave a residence before the end of a lease term. To exercise these protections, a tenant must provide documentation from a qualified third party or other authorized evidence demonstrating that they are a victim of stalking or cyberstalking and that continued occupancy would present a safety concern. The measure also clarifies and expands who may serve as a qualified third party for purposes of supporting a tenant's request. These changes will take effect into law on August 1, 2026. Insurance Affordability and Mitigation Insurance affordability remained one of the most significant issues facing Louisiana homeowners and the real estate market. HB 1187 by Rep. Paul Sawyer , signed by Governor Landry as Act No. 416 , transfers an additional $50 million in Katrina bond assessment funds to the Louisiana Fortify Homes Program. Combined with other insurance-related funding, the program reaches approximately $80 million for the year. The Fortify Homes Program remains one of Louisiana’s most direct tools for reducing property risk, strengthening homes, improving market stability, and placing downward pressure on insurance costs over time. Several additional insurance measures did not reach final passage, including legislation on fortified roof endorsements, nonrenewal protections for homeowners who mitigate risk, and a pre-suit review process for residential property insurance disputes. These remain important long-term priorities. This became law and took effect upon the Governor’s signature. Blight, Redevelopment, and Property Taxes Louisiana REALTORS® supported policies this session aimed at returning neglected property to productive use and strengthening property-tax fairness. HB 214 by Rep. Chance Henry , now Act No. 272 with Governor Landry’s signature, will appear on the ballot as a constitutional amendment authorizing an optional property tax exemption for rehabilitated blighted or derelict property. HB 217, also by Rep. Chance Henry , is the enabling legislation for HB 214 and has received the Governor’s signature, becoming Act No. 422. Together, these measures would give local governments another tool to encourage private investment, neighborhood revitalization, and redevelopment. SB 180 , now Act No. 39 , will also appear on the ballot. The measure allows the surviving spouse of a deceased veteran with a service-connected disability to transfer an expanded property tax exemption. This is both a property-tax fairness measure and a homeownership stability measure for Louisiana veterans’ families. If passed in the fall election, the measures would take effect on January 1, 2027, as well as SB 180. Defensive Victories Some of the most important wins in this session came from stopping harmful legislation before it became law. Rent Stabilization Stopped Twice HB 472 by Rep. Alonzo Knox , the rent price control bill, was stopped after being involuntarily deferred. Louisiana REALTORS® opposed the bill and provided testimony in committee because rent-control policies can discourage investment, reduce housing supply, create uncertainty for housing providers and ultimately worsen affordability challenges. Knox brought the bill to the House Committee on Municipal, Local and Parochial Affairs twice due to the opposing testimony of our organization and opposition from the Home Builders Association and the Louisiana Apartment Association. Hidden Fees Bill Reshaped Yet Still Thwarted HB 617 by Rep. Mandie Landry , the hidden fees bill, raised concerns because it could have imposed liability on real estate professionals for fees they do not control, including those set by lenders, title companies, insurers, government entities and other third parties. Louisiana REALTORS® successfully negotiated a House-side amendment exempting real estate transactions from the bill’s scope. The bill later died in the Senate Commerce Committee. It is worth noting that the author agreed to include us in an amendment by Rep. Troy Hebert from the House floor, exempting real estate transactions. Automatic Renewal Bill Monitored HB 750, by Rep. Vincent Cox, addressing automatic renewal provisions, was closely monitored by Louisiana REALTORS® to ensure the legislation did not unintentionally apply to residential or commercial leases, property management agreements, association operations, nonprofit activities or standard real estate practices. Those concerns were successfully addressed through a Louisiana REALTORS® amendment offered by Senator Pressly during Senate consideration. When the bill returned to the House, Rep. Cox accepted the amendment and supported concurrence, preserving the bill's consumer protection goals while ensuring Louisiana's real estate industry, housing providers, associations and nonprofits were not subjected to unintended regulatory burdens . Missed Opportunities Two broader legal reform measures passed the House but stalled in the Senate Judiciary A Committee. HB 437, by Rep. Michael Melerine, addressing expert witness fees, and HB 1089, by Rep. Dennis Bamburg, establishing CARE Accounts, both reflected broader efforts to reduce litigation costs, improve Louisiana’s legal climate, and address cost drivers affecting insurance affordability and business competitiveness. Their failure to reach final passage was a missed opportunity, but the issues remain central to Louisiana’s long-term affordability conversation. Louisiana REALTORS® will continue to monitor these proposals and hope to see similar reforms return next session with a different outcome. What Comes Next The end of the session does not end the work. Louisiana REALTORS® will now turn to implementation, member education, ballot engagement and preparation for the next legislative cycle by directly engaging you, the driving force behind all of our efforts. The issues that shaped this session — housing affordability, insurance availability, redevelopment, legal costs, and private property rights — are not going away. Neither are we. Louisiana REALTORS® remain committed to serving as a consistent, credible and effective voice for property owners, homebuyers, housing providers and real estate professionals across Louisiana. Thank You As the Legislature adjourns, Louisiana REALTORS® expresses sincere appreciation to the leadership, members, public officials and advocacy partners who helped make this a productive and successful session for the real estate industry and property owners across Louisiana. We are especially grateful to Louisiana REALTORS® President Ginger Maulden, President-Elect David Favret, Treasurer Misty Ingersoll, Legislative Committee Director Keary Coffin, Outside General Counsel Eric Landry, LARPAC Chairwoman Marsha McGraw-Barbera, the Louisiana Real Estate Commission Commissioners and Executive Team, and the members of the Louisiana REALTORS® Legislative Committee for their leadership, guidance, resources and engagement throughout the session. We also extend a special thank you to those who attended this session’s REALTOR® Day and helped strengthen our presence at the Capitol. Your participation amplified our ability to advocate with one united voice when it mattered most. We further extend our appreciation to the legislators and partners who worked alongside us this session, including Rep. Troy Hebert, Rep. Kim Carver, House Commerce Chairman Daryl Deshotel, Rep. Delisha Boyd, Rep. Stephanie Hilferty, Rep. John Wyble, Sen. Beth Mizell, Sen. Greg Miller, Speaker Phillip DeVillier, Senate President Cameron Henry and Governor Jeff Landry for their leadership, accessibility and commitment to addressing issues impacting housing, property rights, insurance affordability, redevelopment and Louisiana’s economic future. Strong policy outcomes are only possible through collaboration, professionalism and sustained engagement. Louisiana REALTORS® remains grateful for the relationships and partnerships that helped move meaningful legislation across the finish line this year. Please view the session wrap-up tracking report provided by our lobbying team over at Harris, DeVille and Associates.
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