How Long Does It Take to Get Appraisal Results?
Unravel the factors and processes determining how long it takes to receive your appraisal report. Manage your expectations.
An appraisal provides a professional, unbiased opinion of value for an asset, such as real estate, a business, or personal property. These valuations are frequently necessary for various financial transactions, including securing mortgage loans, facilitating property sales, or for estate planning and taxation purposes. Understanding the timeline for receiving appraisal results is important for anyone involved in such processes.
Understanding the Appraisal Process
The appraisal process begins with an initial engagement, where the appraiser gathers preliminary data about the subject asset. For real estate, this typically includes scheduling an on-site inspection of the property’s interior and exterior, which can take anywhere from 30 minutes to a few hours depending on the asset’s size and complexity. During this visit, the appraiser notes the overall condition, features, and any improvements. Following the inspection, the appraiser conducts extensive market research, analyzing comparable sales data and current market trends to inform their valuation. This comprehensive data analysis forms the basis for the detailed appraisal report, which then undergoes an internal quality review before finalization.
Factors Affecting Turnaround Time
Several variables influence appraisal completion time. Asset complexity is a primary factor; unique properties, specialized equipment, or intricate business structures often require more in-depth research and analysis, extending the timeline. Appraiser workload and availability also play a role, as busy periods or a shortage of qualified appraisers can lead to longer wait times. The completeness and accessibility of necessary information from the client directly impact efficiency; delays can occur if financial records for a business valuation or property details for real estate are missing or inaccurate.
The specific type of appraisal report requested can affect the duration. A comprehensive narrative report, for instance, typically requires more time than a summary report due to its detailed analysis and presentation. External market conditions, such as rapid shifts in supply and demand or limited comparable sales data, can also prolong the research phase. Communication between all parties, including the appraiser, client, and lenders, also impacts the process; clear and timely exchanges help prevent misunderstandings and reduce potential delays.
Common Timeframes for Different Appraisal Types
Appraisal results vary considerably depending on the asset type. For residential real estate appraisals, the entire process, from initial request to report delivery, typically spans a few days to a week or two. In active real estate markets, this timeframe might extend up to four weeks.
Commercial real estate appraisals generally require a longer duration due to their increased complexity. These valuations commonly take between two to four weeks. Business valuations can have a wide range, typically taking two weeks for simple businesses, three to six weeks for moderately complex entities, and ten to fourteen weeks or more for highly intricate companies. Personal property appraisals, such as those for machinery or fine art, typically involve an on-site inspection, research, and report writing, with timelines varying based on the items’ scope and nature.
Delivery and Review of the Appraisal Report
Once the appraiser completes their analysis and compiles the findings, the final appraisal report is prepared for delivery. Common delivery methods include online portals, email, or traditional mail. For real estate transactions involving a mortgage, the report is typically sent to the lender for compliance and accuracy review.
Applicants for dwelling-secured credit generally have a right to receive a copy of the appraisal report. This copy is usually provided by the lender no later than three business days before closing. This final delivery marks the culmination of the appraisal process, providing the client with the official valuation opinion. The report contains detailed information about the asset’s value and the factors supporting the appraiser’s conclusion.