Virtual Inspections have become necessary to move transactionsand comply with regulations during the pandemic. While lenders havebeen flexible in using virtual inspections as part of theunderwriting process, in-person inspections will likely be thepreference in the future. However, the pandemic has given aguidebook to the possibility for virtual inspections, how they workand how and when they can be useful. Doing a long-distanceinspection might not ever become the standard, but it will be atool that lenders can use in future deals, beyond the requirementsof the pandemic.

Essentially, virtual inspections and a high-level videoconference call with onsite staff, who will assist in doing arecorded walk through and answering questions for the inspector.There are several guidelines to follow to successfully complete avirtual inspection. "Virtual inspections involve an inspectorconnecting with a property's onsite staff via video conference oran app created specifically for virtual inspections,"Matthew Stoehr, chief technology officer atSabal Capital, tells GlobeSt.com. "To besuccessful, the property's staff must be completely transparentwhen showing the property and forthright about issues that couldimpact funding or appraisal. Depending on the onsite staff, thismay be easy to accomplish or it could be very difficult, but eitherway the thoroughness of the inspection is in many ways out of theinspector's control."

Technology tools are also essential to a quality virtualinspection. Even the most basic technology requirements, likeWi-Fi, can impact a virtual inspection. "Spotty connectivity—Wi-Fior cellular—can cause issues during virtual inspections. Many areasof the country still do not have strong coverage, and even in areaswith stronger connectivity there will inevitably be portions of theproperty with poor signal," says Stoehr. "When video calls aredropped or unable to connect, it can cause significant delays andissues for inspectors."