Do Real Estate Appraisals Expire? What You Need To Know About Appraisal Shelf Life
To check the expiration date on food, all you (usually) have to do is read the box. But what about when it comes to real estate? Let’s get the important stuff out of the way- following most loan guidelines, there is no concrete “expiration period” for real estate appraisals. However, the word “most” is very important here- without it we wouldn’t have an article. There is no date, but no lender who plans to stay in business would give you a loan based on an appraisal performed 30 years ago- or even 1 year ago. As a standard, most solid home appraisals are good for between 60-90 days. This is a good rule of thumb, but it’s not an exact science- there are a few exceptions. Comparables Lenders want comparable sales that aren’t just similar to the subject property, but also represent a snapshot of the current market. To keep things up to date, most lenders are reluctant to consider a loan when the comparables sales (comps) are more than six months old. Appraisal Timeline Based on the fact that comps shouldn’t be more than 6 months old, neither should the appraisal. Depending on the lender and current state of the market, 90-180 days is usually the oldest appraisal you’ll find lenders willing to accept. This is known as the “term of validity.“ A Common Exception When the local market isn’t exactly stable, loan underwriters sometimes require appraisals performed within 3 months. This requirement comes into play more often in a declining market, but lenders sometimes require it for rapidly increasing markets as well. …most of the time though,...Appraisal Secrets eBook – Click Now!
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