How Long Does an Appraisal Take? Hereâs What You Can Expect
Congratulations! Youâve been preapproved for a home mortgage, found your dream home, negotiated an agreeable sales price, and successfully maneuvered through the home inspection process. You now have the fully executed sales contract for your new house.
Next, on to the home appraisal.
Youâll need a home appraisal anytime you take out a loan from a mortgage lender. The appraisal process can get bumpy sometimes, but itâs an important and enlightening part of buying a home.
If youâre a first-time homebuyer, you might not realize how many steps there are until youâre in the thick of it. It helps to prepare yourself for the appraisal process and know how long it will take ahead of time.
How long does a home appraisal take?
It takes most appraisers 1-3 hours to physically inspect a home, but some appraisal inspections take less than an hour. It can then take up to a week or two to get the final appraisal report.
After the appraiser visits the property, theyâll look at comparable home sales in the area. They factor these properties into their appraisal report along with everything they found during their physical inspection.
An appraisal can take longer depending on the appraiserâs workload and the current housing market in your area. The size and complexity of the property can also affect the appraisal timeline.
For example, it will generally take longer to inspect and prepare reports for 6,000 square-foot homes in Dallas, TX than 1,500 square-foot houses in Seattle, WA.
What is an appraisal, and why do I need one?
A home appraisal is an unbiased estimate of your homeâs value performed by a licensed real estate appraiser. Hereâs why you might need one:
Who orders the appraisal and when?
Your mortgage company or lender usually orders the appraisal once the home inspection is complete and repair negotiations have been finalized.
The buyer pays for the appraisal. The home appraisal cost is usually between $300 to $400, depending on the property. It may be more expensive for bigger or more complex properties.
The buyer usually isnât there on the day of the appraisal. The seller can be present, but their real estate agent usually steps in for them. That way, the agent can answer any questions that come up while the appraiser is inspecting the property.
Once the appraisal process is complete, youâll be ready to move forward with a title company and close on your new home.
What happens during an appraisal?
During an appraisal, an appraiser visits the home and thoroughly inspects it. Theyâll take time to examine the home exterior and lot, then come inside to look at the interior.
They gather all the information they need to complete a Uniform Residential Appraisal Report. This detailed form includes measurements of the lot and each room in the home. Theyâll also take pictures of each room, the homeâs exterior, and the yard.
Hereâs what appraisers look at in order to prepare their report:
Property condition
Homes will generally appraise for less when there are clear signs of structural problems or damage. The appraiser will check things like:
Measurements and features
Next, the appraiser will take note of the homeâs dimensions and features, including its location. This includes:
Comparable sales
Once the appraiser has the information they need, theyâll use real estate software to see how the recently sold properties nearby compare to yours. These are comparable sales, sometimes called âcomparablesâ or âreal estate compsâ for short.
Appraisers often look within a quarter- or half-mile radius of your home. They might use distances of a mile or more if the homes in your neighborhood are further apart.
Appraisers check similar properties for things like age, size, overall condition, the number of bedrooms and bathrooms, the homeâs location in the neighborhood, and more.
The appraiser will use comparable sales along with their earlier inspection notes to decide the propertyâs fair market value. Then, theyâll complete the appraisal report and forward it to your lender. You can then move forward in the closing process.
3 possible outcomes of a home appraisal
When the final report comes in, the appraisal value could go one of three ways:
1. The appraisal comes in lower than the agreed-upon price
Letâs say you agreed to pay $250,000 for a house, but the appraisal says the home is only worth $240,000. You have several options:
2. The appraisal comes in higher than the agreed-upon price
Great news, you just bought a home with some equity already built-in.
Letâs say you agreed on a $250,000 price, but the appraisal shows a property value of $260,000. In this case, youâd be starting with $10,000 worth of equity before you even make your first payment.
The seller canât demand more money if an appraisal comes back higher than expected, so the home sale can move forward as planned.
3. The appraisal matches the agreed-upon price
Sometimes the appraised home value matches the agreed-upon purchase price exactly. This means the buyer, seller, and lender are all happy, and the buying process can move forward without extra negotiations.
Home appraisal FAQs
Why is my appraisal taking so long?
Waiting for your appraisal report can be nerve-wracking, especially when it takes longer than expected. This can happen for a couple reasons:
Either of these scenarios will affect the final appraisal timeline.
When does the buyer get the appraisal report?
The buyer receives the appraisal report after the appraiser has physically inspected the property, assessed comparable properties in the area, and factored everything into a final appraised value. Once theyâve finalized the report, theyâll send it to the mortgage lender that ordered it.
It can take a few days to a few weeks to get an appraisal report back. If you havenât heard anything after a while, ask your real estate agent or lender if they can offer any updates.
How long does it take to get an appraisal scheduled?
You can usually get an appraisal scheduled within a day or two of it being ordered. Like other parts of the home buying process, workforce shortages and the appraiserâs workload could affect availability.