When you're ready to buy a home and have signed the purchase and sale contract before the lender approves the mortgage, you'll need a property appraisal. An appraisal confirms that the home is worth the agreed-upon price. While you want the closing process to go as fast as possible, without an official appraisal, the lender won't approve a mortgage, and you risk overpaying for the property. Read on to understand how long an appraisal takes and why you need this essential step to protect your investment.
What Is a Home Appraisal?
A home appraisal assesses a property's condition and market value. A professional appraiser will walk through the house to determine the home's market value. An appraisal differs from a home inspection, which offers detailed information on a property's condition, major systems and possible repairs.
Instead, the appraiser evaluates the property's value based on its condition and any upgrades or improvements that may increase its value compared to similar properties in the area.
The appraised value helps the buyer and mortgage lender determine whether they are paying a fair price for the property. Home appraisal costs vary by location and property size but usually cost around $350.
How Long Does a Home Appraisal Take?
A home appraisal usually only takes a few hours. You will need to make an appointment, and it could take a couple of weeks to get an appointment. This depends on how busy the appraiser is and the home's location, as rural properties may have a longer delay for an appraiser to get there. The size of the home and whether it has upgrades or major issues will affect the appraisal time.
Factors That Affect Appraisal Time
Various factors can affect appraisal time, from the complexity of the appraisal to the appraiser's schedule. Here's what you'll need to consider.
Property Type and Complexity
The size and uniqueness of a property can impact appraisal time. For example, an appraiser may require additional time to appraise commercial properties or specialized properties such as historic buildings.
Availability of the Appraiser
The demand for appraisers will also affect how long it takes to get an appraisal. You could face potential delays based on the appraiser's availability. If you have limited windows when you can be available, or the property can be appraised, scheduling conflicts can extend the time needed for an appraisal. To increase appraisal speed, try to adapt to the appraiser's first available appointment.
Completeness of Property Information
It's essential to have accurate and detailed information about the property for the appraiser. If you're missing key documents related to the property size, tax registration or other information, this could potentially delay the appraisal. You can speak with your real estate agent or real estate attorney to ensure you have the paperwork prepared and ready for appraisal day.
How Long Does It Usually Require to Schedule an Appraisal?
The time required to schedule an appraisal can vary by location and appraiser. Your mortgage lender will typically contact a third-party appraiser to request the appraisal. Sometimes, the appraisal could be scheduled within 48 hours of the request. Depending on how busy they are and the location of your property, you may only get an appointment within one to three weeks.
What Happens During an Appraisal?
During the appraisal, a professional appraiser will visit the property. The appraiser will view the property and gather key data about the property and any improvements. The home visit can take one to three hours, depending on the property size.
The appraiser will look at major systems and take measurements. For example, they will note the:
- Home location
- The surrounding area, including nearby schools and other amenities
- Age of the home
- Square footage
- Number of bedrooms and bathrooms
- The functionality of the layout
- Recent renovations, updates or repairs
- HVAC systems
- Condition of the roof and foundation
- Condition of the walls, ceilings and floors
- Construction quality and building material
- Structural integrity
- Appliances included
How Long Does It Usually Take to Obtain an Appraisal Report?
After the home visit, appraisers can take up to two weeks to complete and deliver the final report. After the visit, they will need to look at comparable properties in the area and factor in their condition and market value with what they found during the property appraisal. An appraisal may take longer because of an appraiser's workload, the housing market or the complexity of a property.
What to Do if the Appraisal Takes Longer Than the Expected Time Frame?
If the appraisal takes longer than expected, you have the option to speak with your mortgage lender and the seller about delaying the sale until the appraisal can be completed. The sale may fall through if the seller doesn't agree to extend the purchase and sale agreement. In most cases, the home appraisal can be completed within two weeks.
Getting a Home Appraisal
A home appraisal is an essential step in the mortgage approval process. It assures you and the lender that you aren't paying more than the home's value. A home appraisal is a contingency in most purchase and sale agreements. Ready to get started buying your dream home? Find online mortgage lenders, check out Benzinga's purchase and refinance mortgage lenders or check out professional appraisers here.
Frequently Asked Questions
Is there a standard timeline for completing an appraisal?
While there’s no standard timeline for completing an appraisal, in most cases, you can expect to get the appraisal back within one to two weeks.
Can the appraisal process be expedited if needed?
In some cases, the appraisal process can be expedited. You can speak with your mortgage lender and the appraiser to see whether getting the appraisal faster is possible.
Is there a difference in the appraisal timelines for residential and commercial properties?
Yes, there can be a difference in appraisal timelines between residential and commercial properties. Commercial properties can take longer for appraisal based on the size, location and complexity of the structure. For example, a 15,000-square-foot shopping center could take longer to appraise than a 1,500-square-foot single-family home.
About Alison Plaut
Alison Plaut is a personal finance and investing writer with a sustainable MBA, passionate about helping people learn more about wealth building and responsible debt for financial freedom. She has more than 17 years of writing experience, focused on real estate and mortgages, business, personal finance, and investing. Her work has been published in The Motley Fool, MoneyLion, and she regularly contributes to Benzinga.