Virtual Inspections have become necessary to move transactions and comply with regulations during the pandemic. While lenders have been flexible in using virtual inspections as part of the underwriting process, in-person inspections will likely be the preference in the future. However, the pandemic has given a guidebook to the possibility for virtual inspections, how they work and how and when they can be useful. Doing a long-distance inspection might not ever become the standard, but it will be a tool that lenders can use in future deals, beyond the requirements of the pandemic.

Essentially, virtual inspections and a high-level video conference call with onsite staff, who will assist in doing a recorded walk through and answering questions for the inspector. There are several guidelines to follow to successfully complete a virtual inspection. "Virtual inspections involve an inspector connecting with a property's onsite staff via video conference or an app created specifically for virtual inspections," Matthew Stoehr, chief technology officer at Sabal Capital, tells GlobeSt.com. "To be successful, the property's staff must be completely transparent when showing the property and forthright about issues that could impact funding or appraisal. Depending on the onsite staff, this may be easy to accomplish or it could be very difficult, but either way the thoroughness of the inspection is in many ways out of the inspector's control."

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