How Long Is an Appraisal Good For?

A real estate appraisal is a professional, unbiased estimate of a property’s market value. Its fundamental purpose is to provide an objective valuation, typically for a specific transaction or financial need. Appraisals are necessary in various situations, such as when buying or selling a home, refinancing a mortgage, or settling an estate. They play a crucial role in ensuring that all parties involved have an accurate understanding of a property’s worth, which helps to mitigate financial risks.

Standard Appraisal Validity Periods

A real estate appraisal is typically considered valid for four to six months. This common guideline reflects the period when market conditions and property characteristics are generally stable enough for the initial valuation to hold true. An appraisal provides an opinion of value as of a specific effective date, reflecting market conditions and the property’s physical state on the day the appraiser inspected it and completed their analysis.

While a six-month guideline is common, it is not a strict legal expiration. The actual acceptance period varies by intended use and involved parties. An older appraisal’s reliability diminishes as market dynamics shift. Lenders and financial institutions have internal policies on the maximum age of an accepted appraisal. Its utility is directly tied to how current its valuation remains in a dynamic market.

Factors Affecting Appraisal Lifespan

Several factors can significantly influence an appraisal’s lifespan, potentially rendering it outdated sooner than the general guideline. Rapid market fluctuations are a primary concern. Significant increases or decreases in property values can quickly erode an earlier appraisal’s accuracy. Economic shifts, interest rate changes, or shifts in local housing supply and demand can cause values to deviate. Such volatility often necessitates a new valuation.

Physical changes to the property also shorten an appraisal’s relevance. Major renovations, additions, or significant repairs can enhance value, making a previous appraisal insufficient. Conversely, damage from natural disasters, neglect, or deterioration can diminish value, invalidating an older appraisal. Any material alteration generally requires an updated assessment to capture its revised market worth.

The specific purpose for which an appraisal was obtained also dictates its practical lifespan. An appraisal for a mortgage refinance may have different longevity requirements than one for estate planning or a property tax appeal. Each use has unique considerations determining how long the valuation remains relevant. For instance, a tax appraisal might be valid until the next assessment cycle, while a lending appraisal requires a more current valuation to manage risk.

Loan Specific Appraisal Requirements

Lenders and loan programs impose specific, rigid requirements on appraisal age, driven by regulatory standards and risk assessment. For conventional loans, the typical validity period ranges from 120 to 180 days from the effective date. Some lenders may accept an appraisal up to six months old, contingent on the appraiser providing an updated certification confirming no significant market changes. This confirmation ensures the property’s value still supports the loan.

Government-backed loans, like those insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA), have distinct and often stricter appraisal validity guidelines. For FHA loans, the initial appraisal validity period is 180 days from the effective date for case numbers assigned on or after June 1, 2022. The previous 30-day extension is no longer necessary, and the appraisal update validity period has been extended to one year. These changes align FHA appraisal validity with industry practices.

For VA loans, the appraisal, known as a Notice of Value (NOV), typically remains valid for 180 days from its effective date. For purchase loans, the VA appraisal is generally good until the loan closes. Unlike FHA, there are generally no extension procedures for VA appraisals for loan origination; a new appraisal is typically required if the initial one expires before closing. However, for servicing and loss mitigation, a servicer may request an NOV extension under specific conditions. These timeframes protect both the borrower and lender by ensuring the property’s value accurately reflects current market conditions at loan origination, mitigating financial exposure.