If you are wondering how long does an appraisal take, Appraisals are an integral part of the home-buying process. Mortgage lenders require them to assess a property’s market value before you close on it or refinance your mortgage.
They take a comprehensive approach that takes into account the physical characteristics, quality and amenities of the home as well as outside influences like current market trends, local sales of similar homes and more.
The Appraisal Process
An appraisal is the process of estimating a property’s worth in today’s real estate market. It plays a significant role in the home-buying process and could make or break your deal.
An appraiser will take into account various factors, such as the square footage and functional layout of a home. They also inspect its interior condition and structural integrity to identify any issues which could influence its valuation.
Appraisers will then research comparable sales (known as “comps”) in your area to help them calculate an accurate value for your home. They’ll use this data along with what they learn during their inspection to create an appraisal report.
An appraiser may need anywhere from a few hours on-site to several days to complete an appraisal report. The turnaround time depends on the size of the property and how busy the market is.
The Appraiser’s Inspection
The appraiser’s inspection is the initial step in assessing your home’s market value. They do this by physically walking through it and taking pictures of both its interior and exterior.
The appraisal process typically lasts anywhere from 30 minutes to several hours, depending on the size and quality of the property as well as the appraiser’s schedule and workload.
Additionally, they conduct research into recent sales of homes similar to yours (known as “comps”) and take these factors into account when creating a report that sets your house’s price accordingly.
You can use the inspection as an opportunity to show off improvements you’ve made to your home, which could help boost its appraisal value. Major upgrades like a new roof or HVAC system will have an enormous effect on a property’s worth.
The Appraisal Report
Appraisals are commonly requested to facilitate a transaction involving an asset, secure financing and confirm compliance with regulatory guidelines. They typically involve analysis of the asset, local comparable properties, a value determination and information about how the appraiser arrived at that figure.
Homeowners typically receive their appraisal report from their lender within seven to 10 days, though this may take longer for FHA or VA loans.
The appraiser begins by comparing your property to recent sales of similar homes in your area. These houses must be within a certain distance from your house – typically one-quarter to half a mile – and share similar physical characteristics.
Depending on the number of comparable homes and how long it takes the appraiser to research, your report could take up to two weeks to complete. Furthermore, they submit it directly to your lender who may then contact you regarding setting a closing date.
The Final Appraisal Report
Typically, the appraiser will deliver a final appraisal report with the market value of your property within one or two weeks after their inspection. This report includes a physical review, an analysis of recent sales data, and detailed adjustments to comparables.
An appraisal is frequently necessary when selling or refinancing a home. If the value of your property is lower than what you want to borrow, your lender could deny your application for financing.
If you believe there has been an error in the appraisal, you have the right to appeal it. But first it’s essential that you comprehend the process.