Browse
Log in / Register
Share
The home appraisal typically takes between a few days to three weeks from scheduling to receiving the final report, with the physical inspection itself lasting 30 minutes to 2 hours. This unbiased valuation is a critical step in the mortgage process, designed to protect both the buyer and the lender by ensuring the loan amount does not exceed the property's fair market value. Understanding the timeline, cost, and potential outcomes is essential for navigating this phase of the home purchase.
A home appraisal is an unbiased estimate of a property’s market value conducted by a licensed or certified real estate appraiser. Mortgage lenders require this assessment to confirm the property is worth the sale price, ensuring they are not lending more money than the home’s value. This process also protects you, the buyer, from overpaying. The appraiser’s opinion of value is based on a combination of factors, including the home’s condition, size, features, and recent sales prices of comparable properties in the area, known as "comps."
The appraisal involves two distinct phases: the on-site property visit and the report preparation. The physical inspection of a standard single-family home usually takes 30 minutes to an hour. For larger, unique, or complex properties, this can extend up to two hours. The appraiser will measure the home, photograph its condition, and note its features.
The more variable part of the timeline is the completion of the Uniform Residential Appraisal Report (URAR), the standardized document used for most mortgage transactions. From the time the appraisal is ordered, the entire process can take anywhere from a few days to three weeks. This timeline is influenced by:
Your mortgage lender orders the appraisal, but the buyer pays for it. This step occurs after the home inspection is complete and any repair negotiations with the seller have been finalized. The typical home appraisal cost ranges from $300 to $400, though it can be higher for very large or intricate properties. On the day of the inspection, the buyer is typically not present. The seller or their real estate agent will usually be there to provide access and answer basic questions.
The appraisal value can come in lower than, higher than, or equal to the agreed-upon purchase price. Each scenario has specific implications for the transaction.
Appraisal is Lower than the Purchase Price: If you agreed to pay $450,000 but the appraisal is $440,000, the lender will not finance the $10,000 gap. Your options include:
Appraisal is Higher than the Purchase Price: This is favorable for the buyer, as it means instant equity. The sale proceeds at the contracted price; the seller cannot demand more money based on the higher appraisal.
Appraisal Matches the Purchase Price: This is the most straightforward outcome, allowing the mortgage process to continue smoothly toward closing.
While both involve a professional evaluating the property, their purposes are distinct. A home inspection is a thorough examination of the home's physical condition to identify potential defects or needed repairs. An appraisal is focused on determining the property's market value for the lender's purposes. The inspector looks for problems; the appraiser assesses value.
To ensure a smooth appraisal process, based on our experience assessment, we recommend ensuring the property is clean, accessible, and that any minor repairs are addressed beforehand. While you cannot influence the appraiser’s valuation directly, presenting a well-maintained home can contribute to an accurate assessment. The key is to understand the potential timelines and outcomes so you can plan your next steps effectively.
