Behind-The-Scenes: How Long Does a Real Estate Appraisal Take?
One of the most common questions from homeowners and buyers alike is, "How long does a real estate appraisal take?" In this blog post, we'll dive into the various stages of the appraisal process, explore factors that can affect its duration, and offer insights to help you prepare for an efficient and timely appraisal.
Whether you're selling your home, looking to buy, or considering refinancing, getting to grips with the appraisal timeline will equip you with the knowledge to plan accordingly and make informed decisions throughout your real estate journey.
Overview of the Appraisal Process
If you really want to answer the question ”How long does a real estate appraisal take?'' you first need to understand each step of the home appraisal process. Here’s a breakdown of the stages:
Initial Request and Appointment Scheduling:
The process kicks off with an appraisal request, typically initiated by the lender for mortgage-related appraisals or by the property owner for other purposes. Following the request, an appointment is scheduled for the appraiser to visit the property.
Property Visit:
During the property visit, the appraiser walks the property to assess the condition of the home, its size, location, and unique features.
Research and Data Collection:
After the property visit, the appraiser conducts research to collect data on comparable sales in the area, current market trends, and any other relevant information that influences property value.
Analysis of Comparable Sales (Comps):
The appraiser analyzes sales of similar properties, adjusting for differences to determine a fair market value for the subject property. This comparative analysis is fundamental to the appraisal process.
Report Compilation:
With all the necessary data in hand, the appraiser compiles the appraisal report, detailing their findings, the methods used for valuation, and the final appraised value of the property.
Review and Delivery:
Before delivery, the report undergoes a review process to ensure accuracy and completeness. Once finalized, you will then receive the appraisal report.
If you want to learn more about the appraisal process, check out this article.
Factors Influencing the Duration of an Appraisal
Several variables can affect how long it takes to complete a real estate appraisal. Understanding these factors can help set realistic expectations for the appraisal timeline:
Complexity of the Property:
Properties with unique features, large homes, or those that are of unusual types often require more time for a thorough observation and for finding suitable comparables, thereby extending the appraisal process.
Availability of Comparable Sales:
The ease or difficulty of finding comparable sales data significantly impacts the timeline. Areas with fewer sales may require the appraiser to extend their search radius or use less directly comparable properties, which can complicate and lengthen the analysis.
Market Conditions:
The state of the real estate market plays a role. In active markets, there may be plenty of comparable sales data, but the appraiser may also be busier. In contrast, slower markets might result in fewer comparables and a quicker turnaround, albeit with its own set of challenges for valuation.
If you’re still looking for a real estate appraiser, here’s a step-by-step guide to find the perfect property appraiser.
Typical Timeframe for an Appraisal
So, how long does a home appraisal take? While the exact timeframe can vary based on several factors, here's a general estimate for standard residential real estate appraisals and considerations for commercial properties:
Residential Properties:
From the date of the property visit, a standard residential real estate appraisal typically takes about 7 days to complete. This timeframe allows the appraiser to conduct a thorough site visit, gather necessary data, analyze comparable sales, and compile the appraisal report.
Commercial Properties:
Commercial real estate appraisals often require more time due to the complexity and unique nature of these properties. The process can take anywhere from 2 weeks for smaller properties to over a month for more complex jobs.
Factors like the size of the property, its specific use, and the availability of comparable market data contribute to the extended timeline.
Preparation and Its Impact on Timing
A well-prepared property can significantly influence the efficiency of the appraisal process. Here are tips for homeowners on how to prepare for the appraisal visit:
Documentation Ready
Have all relevant documents available, such as any recent improvements listed. This information can help the appraiser assess the property's value more accurately and swiftly. Although improvements do not lead to a dollar for dollar adjustment it is helpful for the appraiser to understand the quality and condition of your home for comparison.
Maintenance and Repairs
Address minor repairs and maintenance issues before the appraisal. Fixing broken windows, replacing broken tiles and replacing rotten wood on the patio can positively impact the appraiser's impression of your property's condition.
Interior Cleanliness:
Ensure the interior of your home is clean and decluttered. A well-kept home allows the appraiser to navigate easily and assess the property without distractions. This also allows the appraiser the best opportunity to note the condition.
Accessibility:
Make sure all areas of your property are accessible, including attics, basements, and crawl spaces. Restricted access to parts of your property can hinder the appraiser’s ability to conduct a thorough observation. In many situations, all of these areas need to be observed by the appraiser.
Highlight Improvements:
Provide a list of improvements and updates made to the property, including dates and costs. Significant upgrades like a new roof, HVAC system, or renovated kitchen can influence the appraised value.
Neighborhood Information:
If applicable, provide information about recent sales or developments in your neighborhood that could assist the appraiser. This is most helpful if you are aware of off market sales which are not easily discovered by the appraiser during a normal course of research.
By taking these steps to prepare for the appraisal visit, homeowners can facilitate a smoother and more efficient appraisal process. A well-prepared property not only makes a good impression, but also provides the appraiser with the necessary information to complete their evaluation promptly, potentially speeding up the overall timeline of your real estate transaction.
What to Do If the Appraisal Takes Too Long
If you find the appraisal process is taking longer than expected, consider the following steps:
Communicate with the Appraiser: Reach out to the appraiser for an update, specifically if you hired the appraiser directly. They can provide insight into any delays and an estimated completion time.
Follow Up with Your Lender: If the appraisal was ordered by your lender, check in with them. They may have additional leverage to expedite the process.
Review Your Agreement: Some appraisal agreements specify a timeframe for completion. Review your agreement to see if the timeline is being met and discuss any discrepancies with the appraiser or lending officer. This agreement may be a simple email or a more formal letter at the time the appraiser accepted the job.
Exercise Patience: While it's important to follow up, remember that a thorough and accurate appraisal can take time, especially in complex cases or challenging markets.
Understanding the typical duration of a real estate appraisal and the various factors that can influence its timeline is crucial for anyone involved in a property transaction.
If you're preparing for a property transaction, reaching out to a professional appraiser for a more specific timeline based on your property type and location can provide clarity and help you navigate the appraisal process with confidence.
Consulting with your real estate agent or lender can also offer further insights and ensure that the appraisal component of your transaction proceeds smoothly. Don't hesitate to seek professional advice to understand the appraisal timeline. Schedule your appraisal with us now and prepare for a successful real estate experience.
