How Long Does the Home Appraisal Process Take?
Get clear insights into the typical duration of a home appraisal, including key elements that can influence its completion.
A home appraisal is a professional valuation of a property’s market value, often required in real estate transactions such as purchases, sales, or refinances. This assessment provides lenders with an independent estimate of the property’s value, ensuring the loan amount is appropriately secured. Understanding the timeline for this process is important for all parties involved, as it influences the overall transaction schedule. The duration of an appraisal can vary, impacting contract deadlines and closing dates for buyers, sellers, and those seeking to refinance existing mortgages.
Understanding the Appraisal Process
The appraisal process begins when a lender orders the service, often through an Appraisal Management Company (AMC). A licensed appraiser is then assigned to the property. The assigned appraiser then contacts the property owner or their agent to schedule a physical inspection of the home. This on-site visit allows the appraiser to gather necessary data, including measurements, property condition, and relevant features.
Following the inspection, the appraiser conducts research and analysis, which includes identifying comparable sales in the local market. They then compile all gathered information into an appraisal report. The report is submitted for quality control review, either by the AMC or the lender, to ensure accuracy and compliance with industry standards. The completed report is then delivered to the lender.
Key Factors Affecting Appraisal Duration
Several elements influence the time it takes to complete a home appraisal. The appraiser’s availability and current workload play a role; during periods of high demand in the real estate market, appraisers may have longer backlogs, extending scheduling times. Property complexity also impacts duration, as unique features, large acreage, remote locations, or properties with extensive deferred maintenance require more detailed analysis and research. For example, a home with unusual architectural styles or specialized improvements may necessitate a broader search for comparable properties.
Market conditions can further affect the timeline; an active market often leads to increased appraisal volume, potentially delaying report delivery. The responsiveness of involved parties, such as the seller or listing agent providing timely access to the property, influences scheduling efficiency. Delays in accessing the property can push back the entire process. Additionally, the lender’s internal review and quality control processes can add several days before the report is finalized.
Typical Appraisal Timelines
The entire appraisal process, from the initial order to the final report delivery, generally takes approximately 7 to 14 business days. This timeframe represents a common average for standard residential properties in typical market conditions. However, this duration can extend depending on influencing factors. In areas with high appraisal demand or for complex properties, the timeline might stretch to 21 business days or longer.
These are average ranges and not fixed deadlines. The initial scheduling of the property inspection typically occurs within a few days of the order being placed. The subsequent report writing and review phases then account for the majority of the remaining time before the final report is transmitted. Variables can cause the process to deviate from these estimates.
What Happens After the Appraisal Report is Delivered
Once the appraisal report is completed and delivered, it is reviewed by the lender. This review ensures the property’s appraised value supports the loan amount requested by the borrower. The lender assesses the report for compliance with lending guidelines and regulatory requirements. If the appraised value meets or exceeds the purchase price or loan amount, the financing process can proceed.
However, if the appraisal comes in lower than the purchase price, it may impact loan approval. In such cases, the lender will communicate the appraised value to the borrower, which may lead to negotiations between the buyer and seller or require the buyer to bring additional funds to closing. The appraisal’s findings are a key component in the lender’s final underwriting decision, influencing the progression of the real estate transaction.