Understanding the Appraisal Process: How Long Does it Take and How to Speed it Up

When it comes to buying or selling a home, one of the most important steps in the process is the appraisal. But just how long does an appraisal take? The answer isn't as simple as you might think.

An appraisal is a professional opinion of the value of a property. It is often required by lenders as part of the loan approval process for a real estate transaction. Appraisals are also used in other situations, such as determining property taxes, settling estates, and dividing assets in a divorce.

The importance of an appraisal is to provide an unbiased estimate of a property's value based on comparable sales and market conditions. In this blog, we will discuss how long an appraisal takes and the various factors that can affect the process.

Factors That Determine The Length Of An Appraisal

There are several factors that can determine the length of an appraisal, including the type of property being appraised, its size, location, condition, and the availability of comparable sales data.

Type

The type of property being appraised can have a significant impact on the length of the appraisal process. Residential properties, such as single-family homes, condos, and townhouses, typically take less time to appraise than commercial properties, such as office buildings, retail properties, and industrial properties.

Size

The larger the property, the more time it may take to appraise. This is because larger properties often have more rooms, features, and square footage to evaluate.

Location

The location of a property can also affect the length of the appraisal process. Properties in urban areas with a high volume of sales and more data available, may take less time to appraise than those in rural areas with less data available.

Condition

The condition of a property can also play a role in the length of the appraisal process. Properties that are in excellent condition and require minimal repairs may take less time to appraise than properties that are in poor condition and require extensive repairs.

Availability

Appraisers use comparable sales data, also known as comps, to determine the value of a property. The availability of comps in the area can affect the length of the appraisal process. If there is a lack of comparable sales data, it may take the appraiser longer to gather the necessary information to complete the appraisal.

Average Length Of An Appraisal

Residential Property

Single-family homes typically take between 1-2 days for the appraiser to complete the appraisal process.
Condos and townhouses may take slightly less time, as they are generally smaller and have fewer features to evaluate.

Commercial Property

Office buildings can take anywhere from 3-5 days to appraise depending on the size and complexity of the property.
Retail properties and industrial properties can take even longer, as they are often larger and have more specialized features to evaluate.

Factors that may affect the average length of an appraisal include market conditions, such as the current state of the real estate market, and the availability of comparable sales data.

It's worth noting that the time an appraiser takes to complete an appraisal is only one part of the process. The lender also need to review and approve the appraisal which can add additional time. Additionally, if the appraisal comes back lower than the offered price, the lender may require a new appraisal which can add more time to the process.

Tips For Speeding Up The Appraisal Process

While the length of an appraisal can be affected by factors such as the type of property and market conditions, there are steps that can be taken to help speed up the process.

Preparing The Property

Ensuring the property is in good condition and easy to access can make the appraisal process go more quickly. This includes making sure the property is clean, free of clutter, and any necessary repairs have been made.

Providing Relevant Information

Providing the appraiser with relevant information such as recent home improvements, property surveys, and any relevant documentation can help speed up the process. This can help the appraiser to gather the necessary information to complete the appraisal more quickly.

Reputable And Experienced

An experienced appraiser will be familiar with the local market and have a good understanding of the type of property being appraised. They will also have access to the necessary comparable sales data, which can help speed up the process.

Another tip is to make sure that the lender that you are working with is able to work well with the appraiser you have chosen. This can help to ensure that the lender is able to process the appraisal more quickly.

Conclusion

In conclusion, an appraisal is an important part of the real estate transaction process, as it provides an unbiased estimate of a property's value. The length of an appraisal can vary depending on the type of property, its size, location, condition, and the availability of comparable sales data.

Residential properties typically take less time to appraise than commercial properties. However, market conditions and lender review can also affect the total time of the appraisal process.

To speed up the appraisal process, it's important to prepare the property before the appraisal, provide relevant information to the appraiser, work with a reputable and experienced appraiser, and have a lender that can work well with the appraiser you have chosen.

Understanding the appraisal process and its potential impact on the success of a real estate transaction is crucial. By being informed and taking the necessary steps, you can help to ensure that the appraisal process goes as smoothly and quickly as possible.