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How Long Are Home Appraisals Valid & What To Do When it Expires

how long is a home appraisal good for

What is the validity period for a house appraisal? It’s a question that comes up in every real estate transaction, whether you’re buying or selling. Understanding the accuracy of a house appraisal is critical for making sound housing market judgments.

Why do you need a home appraisal?

A house appraisal is an important component of the real estate transaction process, providing a thorough evaluation of a property’s value. For sellers, a correct appraisal is critical to determining a competitive listing price that attracts potential purchasers while optimizing returns. Without an appraisal, sellers risk overpricing their property, deterring prospective buyers, or underpricing it, leading to potential financial losses.

Buyers, on the other hand, rely on appraisals to verify they’re making a good investment and not overpaying for the property. Assessing the fair market value of a home can help buyers negotiate with confidence and avoid overpaying in a competitive market. Additionally, lenders require a home appraisal to validate the property’s value and determine the loan amount they’re willing to extend to the buyer. This prevents both the buyer and the lender from entering a transaction in which the property’s valuation does not match the loan amount.

A home appraisal provides transparency and confidence to both buyers and sellers, facilitating fair and informed transactions in the dynamic real estate market.

Which home appraisal will be used?

In real estate, it’s usual for both buyers and sellers to get different appraisals to figure out how much the property is worth from their own points of view.

The evaluation done by the buyer is very important to the deal because it directly affects the lender’s decision about the loan amount. Lenders look at the buyer’s estimate to see if the property’s value is the same as or higher than the loan amount the buyer wants. If the evaluation is lower than the loan amount asked for, the buyer might have trouble getting the money or the price may need to be renegotiated.

For the seller, getting an estimate can tell them a lot about how much the property is worth on the market right now. For owners, this lets them set a fair price for their home that shows its value and raises the chances of getting serious buyers. The seller’s evaluation might not have a direct effect on the buyer’s funding, but it can be used as a starting point for negotiations and give potential buyers peace of mind about the property’s value.

In the end, both appraisals are useful, but the buyer’s assessment usually has more weight in the transaction process because it has a direct effect on choices about funding. That being said, both buyers and sellers can make better decisions in the real estate market and reach their goals if they understand both evaluations well.

How long is a home appraisal good for?

The validity period of a home appraisal is a crucial aspect to consider in the real estate transaction process, as it directly impacts the timeline and logistics involved. Understanding the duration for which an appraisal remains valid can help both buyers and sellers navigate the complexities of the market effectively.

Typically, the validity period of a home appraisal ranges from 90 days to 12 months, depending on various factors, including the type of loan and specific lender requirements. Here’s a breakdown of the validity periods for different types of loans:

  • Conventional Loans: Appraisals for conventional loans are typically valid for 120 days. However, for mortgages purchased by entities like Fannie Mae or Freddie Mac, the validity period extends to 12 months. It’s important to note that for these loans, an appraisal update may be required after four months to ensure the property’s value remains current.
  • FHA Loans: For FHA loans, the appraisal is valid for 120 days, with the option of a 30-day extension under specific conditions. This extension may be granted if the loan closing is delayed due to factors beyond the buyer’s control.
  • USDA Loans: Appraisals for USDA loans have a validity period of 150 days. However, this period can be extended to 240 days with an update, allowing buyers more flexibility in securing financing for rural properties.
  • VA Loans: VA loans offer a six-month validity period for appraisals, providing ample time for buyers to complete the transaction. In some cases, this period may be extended to accommodate delays or unanticipated events.

While these are general guidelines, buyers and sellers need to consult with their lenders to understand specific appraisal requirements and validity periods based on their loan agreements.

What happens if the home appraisal expires?

When a home evaluation ends before the closing process is complete, it can make things more difficult and take longer than planned. In this case, the investor might want a new estimate to figure out how much the property is worth now. This extra analysis could cost more money and make the whole process of buying a house take longer.

Lenders use up-to-date property values to decide who can get a loan and what the terms are, so an old report could also affect the buyer’s ability to get financing. So, if the appraisal validity time ends before closing, problems and uncertainty may arise for both buyers and sellers.

How long does it take to get a new home value report?

The time it takes to get a new home appraised depends on many things, such as the market, the availability of appraisers, and their schedules. A new review can take anywhere from a few weeks to a few months on average to finish.

There may be fast appraisal services available in cases where getting an appraisal quickly is necessary to move the deal forward. However, these services often come with extra costs, and they don’t always promise a much faster response time.

Buyers should work together with their lenders and real estate agents to make sure that appraisal meetings run smoothly and that all the steps needed to buy a home are completed on time. Planning and communicating clearly can help cut down on delays and speed up the review process for everyone.

Find out how long your home appraisal is good for

Both buyers and sellers in the real estate business need to know how long a house assessment is good for. It makes sure that deals are built on correct and up-to-date property values. You can make better choices about buying or selling a house if you know how long your home appraisal is good for. So, before you buy or sell a house, make sure you find out how long the appraisal is good for and make plans based on that.


  • RJ Sinclair

    RJ is our resident money guru, with a knack for keeping finances neat and organized. With previous experience as a budget manager in supply chain companies, he brings a wealth of knowledge and expertise to the table. Count on RJ as a trustworthy source for valuable money tips and advice to help you make the most of your financial journey.