How Long Are House Appraisals Good For?

A house appraisal is an objective evaluation of a property’s market value. This assessment is performed by a licensed professional who considers various factors like the home’s features, condition, and recent sales of comparable properties in the area. Appraisals are a standard part of real estate transactions, assuring buyers, sellers, and lenders that the agreed-upon price is fair. An appraisal reflects the property’s value at a specific point in time, acting as a snapshot.

Standard Appraisal Validity

While an appraisal report does not have a strict expiration date, its usability for real estate transactions, particularly for lending, has a limited lifespan. For many conventional loans, an appraisal is generally considered valid for 90 to 120 days. This timeframe is often set by lenders, who typically consider appraisals good for 90 to 120 days. The limited validity stems from the dynamic nature of real estate markets, where property values can change, ensuring the valuation used for a loan is current and accurate.

Factors Influencing Appraisal Validity

Several conditions can significantly impact or shorten an appraisal’s effective life. Rapid shifts in market conditions, such as quickly appreciating or depreciating values, can make an appraisal outdated sooner. For example, in a highly volatile market, an appraisal might only be reliable for 30 to 60 days.

Changes to the property itself, including major renovations, significant damage, or undisclosed issues, can also necessitate a new valuation. Lender-specific requirements also play a role, as different loan types or financial institutions may impose stricter or shorter validity periods. The relevance of comparable sales also affects validity, as these sales become less indicative of current market value over time.

When a New Appraisal Becomes Necessary

An existing appraisal, even if recently obtained, might no longer be sufficient in several scenarios, requiring a new one. A common trigger is when the initial validity period expires, especially if transaction delays push the closing date beyond the standard 90 to 120 days. A change in the lender involved can also necessitate a new appraisal, as each lender may have specific requirements. Significant changes to the property’s condition or local market value since the original assessment will also require a new evaluation. Furthermore, if a different type of loan product is pursued, such as switching from a conventional loan to a government-backed loan like FHA or VA, a new appraisal adhering to those specific guidelines may be required.

Appraisal Updates and Re-certifications

Options exist to extend the usability of an existing appraisal without requiring a full new report. An “appraisal update” involves the original appraiser reviewing current market data and performing an exterior inspection to confirm the property’s current value. This update brings forward the effective date of the appraisal, providing a current opinion of value.

A “recertification of value,” sometimes called a completion report, confirms that specific conditions or repairs noted in the original appraisal have been met. This does not change the original appraisal’s effective date or provide a new value opinion, but confirms the property’s adherence to prior requirements. Both updates and re-certifications are performed by the original appraiser and lender, and are possible within certain timeframes and under stable market conditions.