How Long Is a Home Appraisal Valid For?

A home appraisal provides an unbiased opinion of a property’s market value. This assessment is a key component in many real estate transactions, especially for financing a purchase, refinance, or home equity loan. Lenders rely on appraisals to confirm that the property’s value adequately supports the loan amount to mitigate their financial risk. The appraisal process captures the property’s value at a distinct moment, reflecting current market conditions and home characteristics.

Standard Appraisal Validity Periods

Appraisal validity for lending varies by loan type and originating entity guidelines. For many conventional loans, an appraisal is typically accepted for 90 to 120 days from its effective date. Government-backed loans have specific validity periods. FHA appraisals are valid for 180 days, with potential for an update to one year. VA loans are valid for 180 days from the Notice of Value (NOV).

An appraisal report specifies an “effective date,” the date the valuation applies. This date is usually when the appraiser conducted the physical inspection. While an appraisal does not technically “expire,” its acceptance for loan closing is time-sensitive. Lenders require the appraisal to reflect a value current with market conditions at loan funding.

Influences on Appraisal Lifespan

Factors can influence an appraisal’s practical lifespan. Significant shifts in the real estate market (e.g., rapid price changes, economic downturns, shifts in supply and demand) can quickly render an older appraisal less reliable. Appraisers incorporate market condition adjustments to account for these fluctuations, but extreme volatility may necessitate a fresh assessment.

Physical changes to the property after the appraisal date impact its relevance. Major renovations (e.g., kitchen or bathroom remodels, finished basements, additions) can increase a home’s value, while damage (e.g., from natural disasters) would decrease it. Not all improvements provide a proportional increase in appraised value; appraisers evaluate enhancements based on quality, functionality, and market appeal. Lenders may also enforce stricter internal guidelines (overlays) than agency minimums, leading to a demand for an updated or new appraisal sooner.

Situations Requiring a New Appraisal

A new appraisal is required when the initial appraisal’s validity period has elapsed. If a loan closing is delayed beyond the 90-180 day window, a new valuation ensures current market accuracy.

If a borrower switches lenders, the new lender may not accept the previous appraisal due to their requirements or need for a formal release. While FHA and VA appraisals often allow for transferability between lenders, conventional loan appraisals are less consistently transferable, depending on each lender’s policies. A new appraisal may also be required if significant changes occur to the property or market conditions since the last appraisal. If an appraisal is lower than the sales price, the lender will only finance up to the appraised value, often prompting negotiations or a new appraisal to proceed at the original price.