To give you an idea of how long an appraisal might take, we’ll show you what the timeline for a home appraisal typically looks like: Take a look below and see why certain stages can take longer. Once your offer is accepted your mortgage lender orders the appraisal. The home appraiser is a third party (not you or the lender), and they usually work through an appraisal management company (AMC). Once the appraisal has been ordered, they’ll typically contact you within 48 hours to schedule a visit to the home.When Is An Appraisal Ordered In The Loan Process?
What Does An Appraiser Look For?
On average, the on-site appraisal visit can take as little as 30 minutes or up to a few hours. Keep in mind this amount of time may differ with a drive-by appraisal.
When a real estate appraiser examines a property, there are several factors they consider, including:
- Exterior integrity: An appraiser will observe the quality of the home’s structure, construction, roof and foundation, and look for any flaws or damages. They may also note the home’s location and neighborhood when determining its value.
- Internal condition: Appraisers will examine the interior quality of the home, such as the square footage, number of rooms, layout and structural integrity. Plus, appraisers will verify that the home has basic necessities such as a furnace (although they won’t test the furnace – that is part of a home inspection).
- Comparable sales (comps): An important part of your appraisal report involves the appraiser researching similar properties in the area, commonly referred to as comparable homes (comps), and using that as a guide for the current value.
When Does The Buyer Get The Appraisal Report?
Depending on certain factors, home buyers can expect to receive their appraisal report within 6 – 20 days from the beginning of the appraisal process.
After the real estate appraiser has collected the necessary information about the home, that information is then used to put together an appraisal report, which serves as a complete property analysis and tells the mortgage lender the final approximation of the home’s value.
The time it takes an appraisal report to be finished can depend on factors like the following:
- The size or complexity of the home being appraised
- The appraiser’s own workload or schedule
- When the mortgage lender ordered the appraisal
In addition to the home’s condition, the appraisal report will also provide a detailed market analysis.
What Happens After The Appraisal?
Once you and your lender have seen the appraisal report, what happens next depends on the report’s findings.
If the home had a low appraisal, meaning the property’s value was deemed less than the sales price, the sale could hit some roadblocks. The mortgage underwriter will likely only approve you for a loan amount matching the appraised value. You can try and talk the seller into lowering their asking price, but if they refuse, you might have to cover the difference with your own money or else back out of the offer. Unless you have an appraisal contingency in place, walking away could cost you your earnest money deposit.
If the appraisal comes in matching or exceeding the sales price, you can proceed with the closing process, possibly with some gained equity.
