The home buying process is a marathon. From getting pre-approved for a mortgage and finding your dream home, to negotiating an acceptable sale price and navigating the home inspection process, the steps can seem endless. But I’ll be home soon.
One important step is a home appraisal, which is required to determine the value of your home. Appraisals can be time-consuming, but they are an important part of the home buying process. First-time home buyers may not know how long it will take to actually purchase a home.
So whether you’re looking for a home in Houston or buying a home in Boston, Redfin breaks down everything you need to know about how long a home appraisal takes and why it’s so important.
In this article
What is an appraisal?
How long does a home appraisal take?
Who requests an appraisal?
What happens during the evaluation?
What can delay evaluation?
Possible evaluation results
conclusion
FAQ
What is an evaluation? Why do we need an evaluation?
A home appraisal is an unbiased estimate of your home’s value, performed by a licensed real estate appraiser. This is necessary for the following reasons:
Your mortgage lender will likely require an appraisal. By providing an estimate of a home’s fair market value, the appraisal ensures that the lender is not owed more money than the property is worth.
An appraisal also protects you by proving you’re not paying more than you should for a home.
How long does a home appraisal take?
A typical home appraisal includes two parts: a site visit and the time it takes to prepare a report.
The visit itself typically takes about 30 minutes for a standard single-family home. If your property is large, unusual, or has unique features, it may take up to 1-2 hours. During this time, the appraiser will walk through the home, take measurements and photos, and document its condition. The complete evaluation process, from setting up your appointment to receiving your final report, can take anywhere from a few days to up to three weeks. This will vary depending on the expert witness’s schedule, the complexity of the report, and the timing. Wait times are often longer during busy seasons such as spring and summer. FHA and VA loans may require an additional week or two to find a qualified appraiser, prepare a more detailed report, and account for any necessary repairs.
To ensure a smooth process, make sure your home is clean and accessible, and make sure to complete any minor repairs before your visit.
Who requests an appraisal and when?
Typically, a mortgage company or lender orders an appraisal after a home inspection has been completed and repair negotiations have been completed.
The purchaser pays the appraisal fee. The average home appraisal costs $500, but can cost anywhere from $200 to $2,000 depending on the size and complexity of the property. Larger or more complex properties may be more expensive. The home inspection fee is separate from the appraisal.
Would you like to walk with an appraiser?
Usually, the buyer is not present on the day of the appraisal. Although the seller can be present, a real estate agent will usually represent you. Doing so will allow your agent to answer any questions that may arise while the appraiser is inspecting the property.
For refinances, the homeowner is usually able to attend the appraisal visit.
Once the appraisal process is complete, you’re ready to proceed with negotiations with the title company and complete construction on your new home.
What happens during the evaluation?
During a home appraisal, an appraiser visits your home and assesses the condition of the home. They take their time to examine the exterior of the home and grounds, then enter the home and look inside. Unlike a home inspector, an appraiser is not there to look for problems. We focus on evaluating a property’s value based on its condition, features, and how it compares to nearby homes that have recently sold.
They collect all the information needed to complete the Uniform Home Appraisal Report (URAR), which is a standardized format used in most mortgage transactions. This includes photos, measurements, and notes about the home’s condition and features.
What can delay a home appraisal?
Waiting for an appraisal report can be stressful, especially if it takes longer than expected. This can occur for several reasons.
For larger homes and rural properties, appraisers will have more to consider when valuing your property. In some cases, you may need to wait for a qualified appraiser to appraise that particular property. In some cases, the appraisal may take some time to complete because the appraiser is busy completing other projects. There may also be a shortage of work in certain fields due to high demand or a lack of qualified appraisers. After the appraisal visit, the appraiser may need additional time to consider additional features or upgrades, or the lender may require revisions before approving the final report. If the valuation is low, it may take more time to satisfy the valuation gap or dispute the valuation, potentially delaying the closing date.
Any of these scenarios could impact the timeline for final evaluation.
Three possible outcomes of a home appraisal
When the appraisal comes back, the home may be worth less, more than, or the same as the agreed upon purchase price. Each outcome will affect your trade slightly differently.
1. Low rating
Let’s say you agree to pay $450,000, but the appraisal says the house is valued at $440,000. That $10,000 difference can cause financing problems because lenders won’t lend more than the home is worth. At this point, you have several options.
Please request a rating review to check for errors (but this is rare).
You pay the difference out of pocket to make up the difference. Some closing costs may be tax deductible.
Ask the seller to lower the price to match the appraised value.
Negotiate a compromise, such as splitting the difference in half.
If there is a contingency evaluation and you can’t reach an agreement, walk away.
2. Highly rated
This is the best case scenario. If your home is appraised at $450,000 and your purchase price is $460,000, your equity before your first payment would start at $10,000. Since the seller cannot increase the price based on the appraisal, the transaction will proceed as planned.
3. Appraised value and purchase price match
This is the simplest result. The lender will proceed with the loan, no renegotiations will be necessary, and everyone will be on track for closing.
conclusion
The appraisal visit itself usually does not delay the closing timeline. Scheduling, market demand, reporting, and lender review tend to take the most time. The best way to avoid appraisal delays is to order as early as possible, have access to the property, and be ready to respond if the lender requests documentation or repairs.
Evaluation Schedule Frequently Asked Questions
How long does it take to evaluate my appointment?
You can typically receive your scheduled evaluation within 1-2 days of placing your order. As with other parts of the home buying process, labor shortages and appraiser workloads can affect availability.
How long does it usually take for assessment results to come back?
After your appraiser’s visit, you can expect your written report to be ready within 3-10 business days, depending on the appraiser’s workload and ease of finding comparable sales. During busy periods, appraisers have busy schedules, so reports may take longer. Unique homes and rural properties can also be slower, as they require more research and coordination.
How long does it take from the completion of the assessment to the deadline?
Many buyers, especially those with conventional financing, can expect closing to take about one to two weeks after the appraisal is completed, assuming the home is appraised for value and the lender does not require any repairs. After appraisal, the loan must still pass an underwriting review, closing income test, and closing disclosures. If the appraised value is low or there are conditions, it may take some time to conclude the contract.
Can I get an evaluation quickly?
Some lenders offer expedited appraisals for an additional fee, but there is no guarantee that the appraisal will be returned by the closing date. It depends on whether you have an appraiser who will prioritize your report. The best way to avoid delays is to order early and have your upgrades and documents ready and easy access to your home. Be sure to contact your lender if you experience any delays.
