How Long Does the Home Appraisal Process Take?

A home appraisal is an impartial estimate of a home’s value. It is a common requirement in real estate transactions like buying, selling, or refinancing. Appraisals assure lenders the financed amount aligns with the property’s market worth. Understanding these timelines helps navigate financial decisions.

The Appraisal Process and Typical Timelines

The home appraisal process begins once a purchase agreement is accepted or a refinance application is submitted. The lender, whose interests the appraisal primarily protects, initiates this step by ordering the appraisal. This order is placed through an appraisal management company (AMC) for unbiased appraiser selection.

Once the appraisal is ordered, an appraiser is assigned and will respond within 48 hours to schedule the property visit. The appraiser then coordinates with the property owner or agent to set a time for the physical inspection. Scheduling can take 2 to 14 days, depending on appraiser availability and market conditions.

The physical inspection involves the appraiser visiting the property to assess its interior and exterior condition. During this visit, the appraiser measures the home, notes its features, takes photographs, and assesses the quality and condition of the property. This visit lasts 30 minutes to a few hours, with larger or complex properties requiring more time.

Following the inspection, the appraiser undertakes report writing. This phase involves research, including analyzing recent sales of comparable properties in the neighborhood, often referred to as “comps.” Appraisers utilize market data, public records, and their inspection findings to determine the home’s value and generate an appraisal report. This report writing can take 2 to 7 days, depending on the complexity of the property and the appraiser’s workload.

After the appraiser completes the report, it is submitted to the lender for review. Lenders have their own internal processes to review the appraisal report, assess valuation, and address concerns. This lender review period can take an additional 1 to 5 business days, extending for government-backed loans like FHA or VA loans due to specific program guidelines. Once the lender’s review is complete, the appraisal report is delivered to the relevant parties within 6 to 20 days from the start of the appraisal process. The entire process, from order to delivery, spans 1 to 2 weeks, but can extend up to a month in some circumstances.

Factors Influencing Appraisal Duration

Several factors can cause the appraisal timeline to extend beyond expectations. One influence is the appraiser’s availability and current workload. In busy markets, high demand leads to fewer available appraisers, causing longer waits for scheduling and reports.

The complexity of the property being appraised also impacts the duration. Unique, large, or non-standard properties, such as those in rural areas, income-producing properties, or those with unusual features or defects, require more research and analysis. Finding suitable comparable sales data for these properties is challenging, adding time to research.

Market conditions play a role in appraisal timelines. In a “hot” market with rapidly increasing prices, appraisers might face difficulties finding recent comparable sales that support higher values, requiring more analysis. Conversely, a “cold” market also presents challenges if there are fewer recent sales to use as comparables. Seasonal fluctuations, like holidays, can also lead to longer waits due to appraiser vacations and slower banking.

Access to the property can create delays. Issues with scheduling the appraiser’s visit, difficulties accessing all areas, or situations involving tenant-occupied homes can prolong inspection. If the appraiser requires multiple visits due to access problems or unforeseen issues, the timeline will be extended.

Lender requirements can also add to the appraisal duration. Some lenders may have additional reviews or criteria that prolong their internal processing of the appraisal report. If the initial report requires revisions, corrections, or additional information from the appraiser, this back-and-forth communication will add days to the overall timeline. Inaccurate or incomplete property information provided at the outset can lead to holdups as the appraiser seeks clarification or missing details.

Expediting and Troubleshooting the Appraisal Timeline

While some aspects of the appraisal process are beyond an individual’s control, proactive measures can help ensure a smoother and faster experience. Ensuring the property is ready for the appraiser’s visit is a primary step. This involves tidying the home, decluttering spaces, and ensuring all areas, including attics, basements, and garages, are easily accessible. Having utilities on and functional, such as electricity and water, is also beneficial.

Providing documentation to the appraiser can streamline their research. A “brag sheet” detailing home improvements and upgrades, including dates, costs, and any permits obtained, can be helpful. Other documents include a copy of the property survey, recent tax bills, homeowners association (HOA) documents, and a list of any recent repairs. These details offer the appraiser an understanding of the property’s history and value-adding features.

Facilitating clear communication among all parties involved, including the lender, real estate agents, and the property owner, can prevent misunderstandings and scheduling conflicts. Confirming the appraiser’s scheduled visit and ensuring someone is available to provide access can avoid delays. Promptly responding to any requests for information from the appraiser or lender can also keep the process moving forward.

Understanding common reasons for delays, such as appraiser backlogs or complex property characteristics, helps manage expectations. While it is not advisable to directly contact the appraiser during their work, following up appropriately with the lender or real estate agent for status updates is acceptable. If a low appraisal occurs, which can cause delays or even jeopardize a transaction, promptly discussing options with the lender or agent, such as challenging the appraisal with additional comparable sales data, is important. This proactive engagement can help navigate roadblocks and maintain momentum toward closing.