How Long Does a Home Appraisal Take to Get Back?
Understand the complete journey of a home appraisal, from initiation to receiving the report, and the variables that shape its timeline.
A home appraisal is an impartial, professional evaluation determining a property’s market value. This assessment is a step in real estate transactions, especially when a mortgage is involved, as it assures both the buyer and the lender of the property’s fair price. Appraisals protect the lender by confirming the home’s value as collateral for the loan amount, mitigating financial risk. They also benefit buyers by providing an objective benchmark, preventing them from overpaying for a home.
The Typical Appraisal Timeline
The appraisal process begins once a purchase contract is executed and the borrower indicates intent to proceed with a lender. The lender then orders the appraisal, often through an appraisal management company (AMC) to ensure appraiser independence. This initial administrative step takes 1 to 2 business days.
After the appraisal is ordered, an appraiser is assigned, and a property inspection is scheduled. This scheduling process can take 48 hours to a week, depending on the appraiser’s availability and the property’s accessibility. The appraiser coordinates directly with the seller or listing agent to set a time for the on-site visit.
The physical inspection involves the appraiser visiting the property to evaluate its condition, size, features, and appeal. This on-site visit lasts between 30 minutes and a few hours, with most average-sized homes taking 30 to 60 minutes. During this time, the appraiser measures the property, takes photographs, and notes any visible defects or upgrades.
Following the inspection, the appraiser dedicates time to research, data analysis, and report compilation. This involves gathering comparable sales data, analyzing local market trends, and incorporating property-specific details into a comprehensive report. This research and report writing phase is the most time-consuming part of the process, taking 2 to 7 business days.
Once the appraiser completes the report, it undergoes a quality control review, sometimes by the AMC or internally by the appraiser’s firm, before official submission. This review ensures accuracy, compliance with industry standards, and adherence to the lender’s requirements. The entire process, from the initial order to the appraiser’s submission of the final report, takes 5 to 20 days.
Factors Affecting Appraisal Duration
Several factors can influence the duration of a home appraisal, extending or shortening the timeline. The property’s characteristics play a role. Complex properties, such as those with unique architectural features, large acreage, non-standard construction, or those in rural or remote areas, may require more extensive research and specialized expertise, prolonging the process.
The appraiser’s availability and current workload impact the timeline. During peak real estate seasons or in markets with a limited number of qualified appraisers, scheduling delays can occur. High demand for appraisals can lead to longer wait times before an appraiser can conduct the physical inspection or finalize the report.
Access to the property can cause delays if scheduling conflicts arise with the seller or tenants. If the appraiser cannot gain timely access for the inspection, it pushes back all subsequent steps. Efficient communication and cooperation in scheduling the visit are important to avoid such postponements.
Challenges in finding sufficient comparable sales data, particularly for unique properties or in less active markets, can extend the research and report writing phase. Appraisers rely on recent sales of similar properties to determine value, and a scarcity of such data necessitates broader or more in-depth market analysis.
Delays can also stem from the client, the lender or appraisal management company, if they are slow in providing necessary information or responding to appraiser queries. Prompt communication from all parties involved helps maintain momentum. If the lender or AMC requests revisions or clarifications after the initial report submission, additional time is needed for the appraiser to address these items.
Receiving and Reviewing the Appraisal Report
Once the appraiser submits the completed appraisal report, it is delivered first to the ordering party, which is the lender or their designated appraisal management company. The appraiser’s client is the party who orders the appraisal, regardless of who ultimately pays for it.
Upon receipt, the lender undertakes an internal review process. This involves checking the report for compliance with regulatory guidelines, accuracy, and adherence to their specific underwriting standards. This internal review is a separate step from the appraiser’s work and can take 1 to 5 business days to complete.
Federal regulations govern how and when the borrower receives a copy of the appraisal report. Under the Equal Credit Opportunity Act, lenders are required to provide applicants with a copy of all appraisals and other written valuations. This copy must be provided promptly upon completion or at least three business days prior to the loan closing, whichever is earlier.
Borrowers are notified of their right to receive a copy of the appraisal within three business days of submitting a loan application. The lender cannot charge a separate fee for providing this copy, although the cost of the appraisal itself is borne by the borrower.
The receipt of the appraisal report signifies a milestone in the loan process. It confirms the property’s estimated value, which directly impacts the mortgage amount the lender is willing to provide. If the appraised value is lower than the agreed-upon purchase price, it may necessitate renegotiations between the buyer and seller or require the buyer to cover the difference.