How Long Does it Take to Do an Appraisal?

A home appraisal is a professional assessment of the value of a property. It involves an unbiased evaluation of various factors, such as the property’s size, condition, location, and comparable sales in the area.

A licensed appraiser typically conducts the valuation and results in a report that includes an estimated value of the property.

There are several reasons why you should have an assessment completed:

1. Buying or selling a home: If you are buying or selling a property, an evaluation helps determine its fair market value. This is crucial for setting an appropriate listing price or making an informed offer.

2. Refinancing: When refinancing a mortgage, lenders often require a valuation to ensure the property’s value supports the loan amount. It helps determine the loan-to-value ratio, influencing the terms and interest rate offered.

3. Property tax assessment: An appraisal can objectively estimate a property’s value, which can be helpful when disputing a property tax assessment. If you believe your property is overvalued, an appraisal report can be used as evidence to support a lower assessment.

4. Estate planning: In the case of inheritance or estate planning, it helps determine the property’s value for tax purposes. This can help ensure the accurate distribution of assets and prevent potential disputes among beneficiaries.

5. Home improvements: If you have made significant upgrades or renovations to your property, appraisals can help assess the impact of these improvements on its value. This information is valuable if you plan to sell the property or borrow against its equity.

Facts and Details About Appraised Value

1. A third-party appraiser conducts the home appraisal process.
2. A real estate appraisal can be conducted to benefit a homebuyer or homeowners refinancing.
3. The duration of an evaluation process can vary depending on several factors, including the current real estate market.
4. A residential property valuation can take several days to about two weeks.
5. Commercial property appraisals may take longer due to the complexity and size of the property.
6. The appraiser’s availability and workload can also impact the timeline.
7. Factors such as the type of property, purpose of the assessment, and location can influence the length of the process.
8. The number of bedrooms and bathrooms can significantly impact the opinion of value.
9. Real Estate agents often accompany an appraiser to the property when determining home value.
10. On average, the process takes approximately ten business days to complete.
11. Around 90% of residential appraisals are finished within two weeks from the initial request.
12. A recent study showed that appraisals for commercial properties typically range from 3 to 6 weeks.
13. Approximately 95% of appraisals undergo a thorough evaluation within the first 48 hours after submission.
14. Research indicates that rush appraisals can be delivered within as little as 24 hours, accounting for about 5% of all requests.

Understanding the Timeline

A home appraisal is an essential step in buying or refinancing a property. The valuation determines the worth of the property and safeguards both the buyer and lender against potential losses.

While every appraisal process takes its unique path, understanding the basic timeline can help anticipate what’s to come. Generally, it can take between one and three weeks once initiated.

Suppose a request was submitted on Monday; it would typically take two days to confirm and schedule the order with an appraiser.

If all goes according to plan, the appraiser should visit the property within a week of scheduling.

• According to the Federal Reserve System, a home appraisal typically takes between one and three weeks to be completed from start to finish.
• Based on data from the National Association of Realtors in 2023, scheduling for a property estimate occurs approximately 48 hours after request.
• A report by Zillow in late 2023 observed that there could be significant variations in the timeline, with some appraisals taking just 4-5 days, while others may stretch up to 3 weeks or longer due to various factors such as location and demand for appraisers.

In over 90 percent of the appraisals I have been involved in, they have come back within a week to ten days.

Factors Impacting the Duration

Several factors impact how long it takes to conduct an appraisal. First, the property’s location determines how soon an appraiser can visit. Properties located in remote areas are usually more challenging to evaluate due to access issues.

In contrast, metropolitan areas may have higher demand and longer wait times for available appraisers.

Think of it like waiting times at a popular restaurant – you’re more likely to wait longer if the demand is high.

Another critical factor influencing an appraisal’s length is market demand for appraisers. In instances of economic booms or low-interest rates, extensive refinancing creates more demand than supply, forcing appraisal timelines to increase.

Additional factors include incomplete documentation or inaccuracies in paperwork submitted before the request. Sometimes, lenders might require additional information before making a final decision, potentially delaying closure.

Now that we recognize why timelines vary and the factors that affect the duration of the appraisal process, let’s delve into what the appraisal process entails.

The Appraisal Process: From Scheduling to Inspection

Whether you’re buying or refinancing a property, the process is crucial in determining its value. Once you’ve requested an appraisal, it’s time to schedule an appointment.

Depending on your location and the appraiser’s availability, this can happen within 48 hours or take up to a week or two.

During the scheduled inspection, the appraiser would tour the property inside and out.

They would inspect aspects of the property, such as measured square footage and the quality of construction, and assess its overall condition based on current market trends.

Over the years, many of my clients have asked me what an appraiser looks for. Take a look at the detailed list of everything appraisers look at.

Following this assessment, the appraiser would obtain data from comparable homes in the area and assess market trends before estimating the fair market value of your home.

How Long Does an Appraiser Stay at Your House?

To complete their work, you can expect an appraisal to last anywhere from thirty minutes to an hour. The more significant and complex a property is, the longer you can expect it to take.

For example, a small condo will be much quicker to view than a mansion. Remember, the appraiser will be carefully looking over the interior and exterior.

They will take measurements of the home and typically will draw a diagram of the floor plan. The layout can matter in the appraisal if there is functional obsolescence.

From my experience meeting appraisers at homes, they almost always spend 30-45 minutes at the house.

How Long Does it Take to Get an Appraisal Back?

From experience, once an appraiser has visited your property, you can expect the estimate to be sent to the mortgage lender within a week or two.

When Does The Buyer Get The Report?

The lender is likely to spend a few days examining the report. They will let a prospective buyer or homeowner know shortly after refinancing their property.

The lender will likely email the borrower a copy of the real estate appraisal. If there are any issues with the appraised value, the mortgage broker or lender will probably reach out first.

Sometimes, in hot seller’s markets with bidding wars, there will be an appraisal gap that needs to be addressed. Some savvy homebuyers will waive their appraisal contingency to make their offer stronger.

Essential Documents for Swift Appraisals

Gathering all relevant documentation beforehand is essential to expedite the assessment process and ensure that all parties have access to accurate information.

These documents typically include:

• Any permits pulled for modifications made to your home
• A list of recent repairs, upgrades, or renovations done on the property
• A land survey or plot map showing where your home is located
• A copy of the sales contract, if there is one
• Any other information regarding easements, encroachments, or boundary disputes

These essential documents provide context for the appraiser and ensure they don’t have to reschedule their visit due to missing documentation.

Now that we understand the documentation required for swift estimation, let’s explore how much a typical appraisal service costs.

What is a Rush Appraisal?

A rush appraisal, also known as an expedited or rushed appraisal, refers to the process of conducting a property assessment on an accelerated timeline.

It is typically requested when there is a need for a quick property valuation, often due to time constraints or urgent circumstances.

In a rush appraisal, the appraiser is expected to complete the report within a shorter timeframe than a standard valuation, which can range from a few days to a week or less, depending on the specific requirements.

This expedited process may involve prioritizing the assignment over others and dedicating more resources to meet the deadline.

It’s important to note that a rush evaluation may come with additional fees or charges due to the increased workload and demand for quick turnaround times.

However, it can be a valuable option for individuals or businesses who require a prompt property valuation for various reasons, such as a time-sensitive real estate transaction or a legal matter.

Over my career as a real estate agent, there have been numerous times when the bank has asked the home appraiser for a quick turnaround.

Cost of Home Appraisal Services

Before delving into the time aspect of home appraisals, it’s essential to understand how much it costs. According to recent data, the cost of a home appraisal can range between $300 to $600 or even more, depending on various factors such as the size and location of the property.

From my experience as a Realtor and buying and refinancing numerous properties, the price has been between $300-$400.

Thus, budgeting for this expense is crucial for home-buying, as mortgage lenders typically require a property evaluation. The appraisal expense will generally be part of your closing costs the lender charges.

Think of a home inspection as a medical check-up before boarding an international flight. At the same time, we hope for all good news and clearances. There’s always a possibility that something may come up needing attention.

After the Appraisal: Steps to Closing

Once your home has been appraised and the appraiser has submitted their report detailing the fair market value of your property, it’s time for the closing process to begin.

The first step post-appraisal is reviewing the findings with your lender and ensuring that everything checks out. If there are any issues or discrepancies in terms of valuation between yourself and your lender, this would be an appropriate time to contest them.

If everything looks good, the next step is choosing a title company. The title company will thoroughly search to ensure no liens or encumbrances on the property. Once they verify everything is clear, they will provide title insurance policies that protect you and your lender against future claims.

Imagine three weeks after moving in that a third party has legal ownership over 25% of your newly purchased condo – not exactly anything you would wish for!

Title insurance policies safeguard against scenarios like this, helping closing occur smoothly.

The final stage is signing and closing after selecting a title company and obtaining your title insurance policy. This process generally occurs at the title company’s or lawyer’s offices.

Your lender will typically provide you with a breakdown of all the costs you’ll be responsible for, called “closing costs.” At this stage, your down payment and any fees will be paid to the seller, and you’ll receive possession of your new home.

Even though home appraisals can seem like yet another task to tackle on your home-buying journey, they are essential in ensuring correct property valuation and maintaining equilibrium in the housing market.

With so much preparation and effort needed throughout the buying process, it’s exhilarating to reach the finish line of finally owning one’s dream home.

Conclusion

The money spent on a house appraisal is well worth it. It could be the difference between overpaying for your sale or not. If you have any questions, feel free to contact me. I would be happy to help.

About the Author: Bill Gassett, a nationally recognized leader in his field, provided information on how long an appraisal takes. He is an expert in mortgages, financing, moving, home improvement, and general real estate.

Learn more about Bill Gassett and the publications he has been featured in. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. Bill has helped people move in and out of Metrowest towns for the last 38+ years.

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