How Long Does an Appraisal Take Once Ordered?
Get clear insights into the full appraisal timeline, understanding typical durations and key factors that can impact its completion.
A real estate appraisal offers an unbiased estimate of a property’s market value, often required in transactions like buying, selling, or refinancing. This article clarifies the typical duration of an appraisal once ordered, along with factors that influence its speed. Understanding these details helps manage expectations throughout a property transaction.
Typical Appraisal Timeline Breakdown
The appraisal process begins when a mortgage lender orders the service. The lender engages a third-party appraisal management company (AMC) to assign a licensed appraiser. This initial administrative phase, from order placement to appraiser assignment and scheduling, generally takes a few days.
Following the scheduling, the appraiser conducts an on-site property inspection. This visit lasts between 30 minutes and a few hours, depending on the property’s size and complexity. During this time, the appraiser measures rooms, photographs the interior and exterior, and assesses the property’s overall condition and features.
After the physical inspection, the appraiser undertakes the most time-consuming phase: report preparation and submission. This involves extensive research into recent comparable sales in the area, analyzing market data, and compiling all findings into a detailed report. This comprehensive report can take anywhere from 2 to 7 days for the appraiser to complete and submit to the ordering party, usually the lender.
Once the lender receives the appraisal report, an internal review process follows. Lenders scrutinize the report to ensure it meets their guidelines and regulatory requirements. This review can add an additional 1 to 5 business days to the overall timeline before the report is finalized and accepted. From the initial order to the final report delivery, the entire appraisal process can typically range from 6 to 20 days.
Key Factors Affecting Appraisal Duration
A primary factor is the appraiser’s availability and current workload. During periods of high real estate activity, such as when interest rates are low, appraisers may have increased demand, leading to longer scheduling and turnaround times. A shortage of qualified appraisers in certain areas can further extend these wait times.
The complexity and type of property also play a role in appraisal duration. Unique, large, or rural properties, or those with unusual features like extensive renovations, may require more detailed inspection and research compared to standard residential homes. Properties with atypical market conditions, where comparable sales data is scarce, can also prolong the research phase as appraisers must search harder for relevant information.
Delays in gaining access to the property can impact the timeline. Scheduling conflicts with homeowners or tenants can push back the on-site inspection, directly delaying subsequent steps in the process. Without timely access, the appraiser cannot begin their physical assessment, causing the entire timeline to shift.
Market conditions also affect how long an appraisal takes. In rapidly changing or volatile markets, appraisers may need additional time to analyze recent sales data and market trends to provide an accurate valuation. A lack of recent comparable sales data in a specific area can extend the research and analysis phase.
Lender-specific requirements and communication protocols can influence the overall timeline. Some lenders may have more stringent review processes or require additional information, which can add days to the process. Ensuring all necessary information about the property, such as details on recent improvements or upgrades, is readily available can prevent delays caused by incomplete documentation.
Managing Expectations and Potential Delays
Maintaining open communication with the lender or the party who ordered the appraisal is important for managing expectations. They are the primary point of contact for updates on the appraisal status and can provide insights into any potential delays. Proactive communication can help in tracking progress and addressing issues promptly.
Ensuring the property is readily accessible for the appraiser’s visit can help streamline the process. Coordinating schedules to allow the appraiser easy entry and a clear path for inspection can prevent unnecessary rescheduling. A well-prepared property with organized documentation of any improvements can also assist the appraiser in their assessment.
The lender is the appraiser’s client, meaning direct communication between the borrower or seller and the appraiser is limited or not permitted due to appraisal independence regulations. Therefore, all inquiries regarding the appraisal timeline should go through the lender or the designated point of contact.
While expedited appraisal services might be available in some cases, often for an additional fee, they are not always guaranteed and should be approached with caution. Rapidly rushed appraisals could compromise the thoroughness of the valuation, although professional appraisers strive to maintain quality regardless of timeline.
If delays occur, inquiring about the specific reasons through the proper channels, such as the lender, is the recommended course of action. Understanding why an appraisal is taking longer than expected, whether due to appraiser workload, property complexity, or market conditions, allows for realistic adjustments to transaction timelines. Avoiding pressure on the appraiser is important, as their independence and objectivity are important to the integrity of the valuation.