One of the biggest questions we are asked is “how long is an appraisal good for?” Well… that isn’t easily answered. But we can help you better understand how long your appraisal report will last, no matter what type of loan you are looking for.
How Long Is Your Home Appraisal Good For?
To be honest, appraisals don’t have an expiration date. We can’t hand you your appraisal report and promise you it will be good for exactly 3 months or 4 months, etc. The problem with appraisals is that they are dependent on your current, local real estate market.
Since your local real estate market is always changing, so is the value of your home. Most mortgage lenders understand that small fluctuations in the market won’t drastically change the price of your home which is why your appraisal report usually lasts anywhere from 2 to 6 months.
More commonly you should be able to rely on your appraisal report for at least 30 days. Now if you get an appraisal done today and tomorrow there is a large crash in the housing market you will need to get an updated appraisal.
The truth is appraisers aren’t the ones who decide if your appraisal report is still good. That is completely up to your mortgage lender.
So if your appraisal is only 2 months old but your local real estate market is especially volatile then your mortgage lender can decide whether or not they will accept that appraisal report or require you to get a new one.
The same can also be said for the opposite. So if your local market has been consistently steady your mortgage lender might decide to accept a 5-month-old appraisal report.
Different Type of Appraisals
Conventional Home Loans – This type of appraisal will be good for anywhere from 1 to 6 months depending on a number of factors.
FHA Loans (Federal Housing Administration) – This type of appraisal will stick with the property for 6 months no matter who the buyer is.
VA Loans (Veterans Affairs) – This type of appraisal is also good for 6 months. There is only one type of VA Loan appraisal that does not last a full 6 months which is the VA IRRRL’s (Interest Rate Reduction Refinancing Loan). An IRRRL only lasts 4 months.
What Changes Require You to Get a New Appraisal?
Now that you know what to expect as far as how long your appraisal will last let’s talk about what sort of things will require you to get a new appraisal.
The Housing Market
This is probably one of the first things that come to mind. When talking about appraisals the housing market is the one thing that affects every home no matter what.
When the market is steady your mortgage lender will allow your home appraisal to last longer. If the local housing market is very up and down your mortgage lender will want your home appraisal to be more recent.
Remodels and Renovations
Renovations or remodels require a new appraisal. Anytime a home is renovated or remodeled the value of the home is going to change (usually by increasing in price).
Once a remodel or renovation is complete we need to look at new comps to properly appraise the home to reflect the new valuation.
There are many things that can damage the home. Floods, hurricanes, a tree falling on the roof, a pipe bursting, and much more.
When something unexpected happens that damages the home, using your homeowner’s insurance will help to get your home back up to code.
However, you will need to get a new appraisal especially if there were a lot of damages that needed to be repaired.
Need An Appraisal?
Here at R.E. Appraisal Associates, we care about our clients and their home selling and buying experience. If you need a home appraisal our excellent staff will help you with a quick and accurate appraisal either in-home or online. To learn more about what affects your home’s appraisal value and what our team can do for you give us a call today at (941) 743-3700.