How Long Does It Take for an Appraisal to Come Back?
Navigate the home appraisal process with clarity. Learn what impacts its duration and how to anticipate receiving your final report.
A home appraisal is a professional, objective assessment of a property’s market value. This valuation is a standard component of real estate transactions, particularly when securing a mortgage, refinancing an existing loan, or selling a property. The primary goal of an appraisal is to provide an unbiased estimate of the home’s worth, which helps lenders determine the appropriate loan amount and assures buyers and sellers that the agreed-upon price is fair. Understanding the timeline for this valuation process is a common concern for anyone involved in buying, selling, or refinancing a home.
The Appraisal Process
The appraisal process begins when a mortgage lender or an Appraisal Management Company (AMC) orders the appraisal. The AMC, an independent third party, then assigns a licensed or certified appraiser to the property. This appraiser coordinates with the property contact, such as a real estate agent or homeowner, to schedule an on-site inspection.
During the inspection, the appraiser examines the property’s interior and exterior, noting its condition, size, features, and any upgrades. Afterward, the appraiser conducts research, analyzing recent sales of comparable properties, reviewing public records, and considering current market conditions.
Once the appraiser completes their analysis, they compile the Uniform Residential Appraisal Report. This report is then submitted to the AMC or lender for review. The lender or AMC ensures the report complies with regulatory standards and their own requirements before finalizing the appraisal.
Factors Influencing Appraisal Timeline
Several factors can influence the appraisal timeline. Appraiser availability and workload play a significant role, as busy real estate markets or seasonal demand can lead to longer wait times. A shortage of qualified appraisers, particularly in rural areas, can also extend the timeline.
The type and complexity of the property are also factors. Unique, very large, rural, or specialized properties often require more extensive research and analysis. Difficulties in scheduling the appraiser’s visit or gaining property access, such as a homeowner’s extended unavailability, can also cause delays.
The completeness of information provided to the appraiser also affects the timeline. Appraisers may need additional documentation, such as Homeowners Association (HOA) documents, renovation permits, or property surveys, which can delay report completion. Lender or AMC requirements can also add time due to extensive internal review processes or specific compliance checks.
Rapidly changing market conditions may require more extensive comparable sales research. If a reinspection is needed after repairs, this adds time. Communication delays between the lender, AMC, appraiser, real estate agents, or homeowners can also cause delays.
Receiving and Reviewing the Appraisal Report
Once the appraisal report is completed and approved, the lender receives it directly from the AMC or appraiser. Under the Equal Credit Opportunity Act Valuations Rule, creditors must notify applicants within three business days of receiving an application of their right to receive a copy of appraisals. The rule also mandates that borrowers receive a copy of the appraisal promptly upon completion, or at least three business days prior to closing, whichever is earlier.
Review the appraisal report for accuracy. Verify property details, such as square footage, the number of bedrooms and bathrooms, and the comparable sales used by the appraiser. If concerns arise regarding the appraisal value, such as factual errors, property misrepresentations, or the use of unsuitable comparable properties, borrowers can discuss these with their lender.
Borrowers can request a “Reconsideration of Value” (ROV) through their lender. This allows borrowers to submit additional documentation or information on comparable properties to support a different valuation. The lender’s quality assurance team or a subject matter expert will review the ROV request and supporting documentation before submitting it to the appraiser for consideration.