How Long Does the Appraisal Process Take?
Get a complete understanding of the real estate appraisal process timeline, from order to lender acceptance, and what impacts its duration.
A real estate appraisal provides an unbiased estimate of a property’s market value. This valuation is often required in financial transactions, such as when purchasing, selling, or refinancing a home. Lenders typically mandate an appraisal to ensure the property’s value adequately supports the loan amount. Understanding the typical duration of this process can help individuals plan their real estate transactions more effectively.
Key Stages and Timelines of an Appraisal
The appraisal process begins when a lender or client places an order, typically assigning an appraiser within one to two business days. The appraiser will then contact the property owner or agent to schedule an on-site inspection, a step that usually takes one to three business days.
The actual on-site property inspection typically lasts between 30 minutes to two hours, depending on the size, complexity, and condition of the home. During this visit, the appraiser gathers detailed information, photographs, and measurements necessary for their analysis.
After the inspection, the appraiser dedicates off-site data research and analysis. This involves collecting comparable sales data, reviewing public records, analyzing local market trends, and performing detailed calculations to determine the property’s value. This analytical phase generally requires three to five business days.
Finally, the appraiser compiles a comprehensive appraisal report. This detailed document presents the valuation, supported by the data and analysis performed. The report writing and submission to the client typically take an additional two to four business days. From the initial order placement to the appraiser’s submission of the completed report, the entire process usually spans approximately seven to fourteen business days.
Factors Influencing Appraisal Duration
Several elements can cause the appraisal timeline to vary. The characteristics of the property itself play a significant role, as unique features, large acreage, or unusual property types may require more extensive research and analysis. Properties in complex conditions or remote locations can also extend the time needed for a thorough evaluation.
The availability and workload of appraisers can also impact the duration. High demand for appraisals, seasonal peaks in real estate activity, or the individual appraiser’s current capacity may lead to longer turnaround times. Securing prompt access to the property for the inspection is also important, as delays in scheduling or gaining entry can significantly push back the overall timeline.
The ease with which an appraiser can find sufficient and relevant comparable sales data in a specific market influences the process. Areas with fewer recent sales of similar properties may necessitate a broader search, adding to the research phase. The responsiveness of the client or property occupants in providing necessary documents or information can affect how quickly the appraiser can proceed.
Market conditions also play a part, as rapidly changing or volatile markets might require more extensive analysis to accurately assess value. Appraisers must account for shifts in supply and demand that could impact property prices. Typical appraisal turnaround times can vary across different geographic regions due to local market dynamics or varying regulatory requirements.
Post-Appraisal Report Review and Completion
Once the appraiser submits the report, the process shifts to the lender’s internal review. A lender’s appraisal desk or an underwriter will thoroughly examine the submitted report for compliance, accuracy, and completeness. This crucial review phase typically takes an additional two to five business days.
In some instances, the lender may request clarifications or revisions from the appraiser if they identify any discrepancies or require further information. Such requests can add one to three business days per revision, depending on the complexity of the query and the appraiser’s response time.
The appraisal is officially accepted by the lender once their review is complete and any necessary revisions have been addressed. Factoring in both the appraiser’s work and the lender’s review phases, the total timeframe from the initial appraisal order to final lender acceptance can range from two to four weeks.