How Long Is a Conventional Appraisal Good For?

A conventional appraisal provides an independent estimate of a property’s market value. This assessment is a foundational step in real estate transactions, particularly when securing a mortgage. Lenders rely on it to confirm the property’s value aligns with the loan amount, protecting their investment. It also helps ensure the sale price is reasonable and supported by market data.

Standard Validity Period

A conventional appraisal is typically valid for 90 to 120 days from its effective date. Fannie Mae and Freddie Mac consider appraisals on existing homes valid for 12 months, but require an appraisal update if the report is more than 120 days old. This timeframe ensures the property’s value is current for lending purposes. While 120 days is a common guideline, the exact duration can sometimes vary based on individual lender policies.

Factors Affecting Appraisal Validity

Several conditions can shorten an appraisal’s validity. Significant changes in local real estate market conditions, such as rapid price increases or declines, can quickly render an appraisal outdated. Appraisers rely on recent comparable sales, and volatile markets can make older sales less reflective of current values. Individual mortgage lenders also have internal policies that may impose shorter validity periods than the general industry standard.

Changes to the property’s physical state can also impact an appraisal’s validity. If a property sustains physical changes or damage after the appraisal, the original valuation may no longer be accurate. Lenders require the property to be a sound investment, and substantial physical changes can affect this assessment. Additionally, different loan programs have specific appraisal validity rules that can differ from conventional loan requirements.

Appraisal Updates and Re-certifications

When an appraisal’s validity period expires or needs review, lenders typically request an appraisal update or a re-certification of value. An appraisal update is a less extensive review conducted by the original appraiser to confirm the original value or make adjustments based on current market data. This process often involves an exterior inspection of the property and a review of recent market trends. An update is commonly used when the original appraisal is between four and twelve months old.

A re-certification of value confirms whether specific conditions of a prior appraisal have been met, such as the completion of repairs or construction. This type of report does not typically bring forward the effective date of the original valuation. A completely new appraisal is generally required when the original is too old, usually exceeding 12 months, or when major property alterations or significant market shifts necessitate a fresh, comprehensive assessment of value.