Many people want to know how long their appraisal will be accurate or valid? While there is no specific answer that you will see across the board I can point out a few details that may help you find a safe answer.
Let’s start off technically speaking - The appraisal valuation is as of the day of the inspection and typically will be good for 3-6 months barring extenuating circumstances. But what are extenuating circumstances?
The appraiser comes out and looks at the home but the next day there is a fire and half the house is gone. Or maybe a week after the appraisal inspection was completed a tornado hits town and there are some small damages to the home. Sure the home may not be completely gone or there may only be small issues but the appraisal no longer reflects what the appraiser saw the day of inspection. Anytime there are major improvements/renovations or major damages to the property this could affect the appraised value.
Aside from weather related issues there could be issues like a business in town shuts down flooding the market with homes for sale or a new plant is being built that expands job opportunities and restricts inventory. There could be new building or new sales of surrounding properties that would affect the appraised price. When writing up the appraisal and finding information to back up their valuation appraisers have to find comparables of the home - and these are typically sold within the last 3-6 months.
Now, there are certainly areas that are more stable and settled in terms of weather, sales and building, or a more stable job market. The appraised valuation in an area without much development or weather hazards most likely would be stable for anywhere from 3 to 6 months. Some may be accurate for market conditions a little less or a little longer depending on the area and extenuating circumstances.
Why is it such a short time? If you are purchasing or refinancing, Lenders want the most up to date data that they can get to make sure they are making sound investments, and you want everything to be up to date so you can have the best deal. In general the newer the information the better and more realistic an estimate you will receive. If you have specific questions about your appraisal and if it is still up to date we are happy to help. If your appraisal needs to be updated we can provide that for you as well. Please email us at appraising@hotmail.com or call our office at 302-745-1790.