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How Long Does an Appraisal Take and What to Expect?

Dusty Rhodes • July 19, 2021

Congratulations! You’ve gotten preapproved for a home mortgage, found your dream home, negotiated an agreeable sales price, successfully maneuvered through the home inspection process, and finally, you have a fully executed sales contract in hand for your new house. 


If you’re a first-time homebuyer, you may not realize all the steps that go into buying a new home. Some of them, like the home inspection and obtaining the real estate appraisal, can be stressful. So, what should you expect with this next step in the appraisal process? And how long does an appraisal take?


Let’s go over some appraisal basics to help you understand what is involved in one of the last steps in your home buying journey.


What is an appraisal, and why do I need one?

An appraisal is an objective estimate of a home’s value. It is provided by a licensed professional real estate appraiser.


You need an appraisal for several reasons. First, an appraisal is needed primarily for your mortgage lender. By providing an estimate of the fair market value of your home, the appraisal assures the lender they are not lending more money for a piece of property than it’s actually worth. Also, the appraisal helps protect you, it assures that you’re not paying more for the home than you should.


How long does an appraisal take?

The home appraiser, on average, will visit a property for 1-3 hours, however, you most likely will not get back the final appraisal report for one to two weeks. The amount of time it takes for the appraiser to complete the appraisal process varies depending on the size and complexity of the house. For example, a 10,000 square foot property with a detached carriage house, horse barn, and lots of land in Dallas, TX will take longer to appraise than a three-bedroom, two-bathroom 1,900 square foot house in Seattle, WA. 


Remember, once the appraiser has done the physical inspection of the property, he or she then needs to begin the work of locating comparable properties and eventually writing up the final report. From the initial inspection of the property to obtaining a final report can take a week to two for a typical property, depending on how busy the appraisers are and what the housing market is doing in your area at the time.


Who orders the appraisal and when?

Your mortgage company or lender orders the appraisal once all the inspections are complete and inspection repair negotiations have been finalized (if there are any). The home appraisal cost is usually between $300 to $400 or more, depending upon the size and complexity of the property, and the appraisal is paid for by the buyer. 


What happens during an appraisal?

During an appraisal, the appraiser visits the home where they thoroughly inspect the property, inside and out. Unlike the home inspector who tests all of the systems within the home and recommends any needed repairs, the appraiser is interested in determining the market value of the property as it compares to similar homes in the area.


The appraiser does this by gathering information needed to complete a Uniform Residential Appraisal Report. This form is quite detailed and requires the appraiser to measure each room and the lot the house sits on. They also take pictures of every room in the home and the exterior, including the yard.


They have to note, among other things, how old the house is, where it is located, how big it is, and what the structure is made of. They also determine whether the layout of the house is optimally functional, the number of bedrooms and bathrooms, and the overall condition of the interior, roof, and siding.


Once the appraiser has compiled all the necessary information from your property, he will obtain information on nearby homes. It is important that these houses are comparable to your property. He will use all of this information to determine a fair market value of the property, complete the Appraisal Report and forward the report to your lender so you can move forward in the closing process.


And in case you’re wondering, the buyer is typically not in attendance on the day of the appraisal. The seller can be present during the appraisal, but often their agent steps in and takes their place. This way, the agent is available to answer any questions that may come up while the appraiser is conducting the inspection of the property.

3 possible outcomes of a home appraisal

When the appraisal comes in, the fair market value assessed by the appraiser could go one of three ways. 


1. The appraisal comes in lower than the agreed-upon purchase price

You have several options if the appraised value comes in lower than the agreed-upon sale price. 



You can request an appraisal review. An appraisal review is when another licensed appraiser prepares an independent report using the same elements found in a standard appraisal. The purpose is for the reviewer to comment on the accuracy and completeness of the initial appraisal. 


You could also offer to make up the difference by bringing any additional amount needed to closing. For example, if the agreed-upon purchase price is $225,000 but the appraised value comes in at $215,000, you would pay an additional $10,000 in closing costs to make up the difference. Some closing costs are tax-deductible.


Another option would be to ask the seller to lower the purchase price by whatever amount fits your financial situation best. This includes having the seller drop the purchase price to match the appraised value, in other words, the seller would take $10,000 off the agreed purchase price. 


You could try negotiating with the seller. You may choose to increase the amount of cash you bring to closing by $5,000 and ask that the seller drop the purchase price by $5,000. This would make up for the $10,000 difference between the purchase price and the appraised value.


A final option would be for you to walk away. If you and the seller are unable to agree on a way to settle the issue concerning the low appraised value, and you signed an appraisal contingency, you have the option to withdraw your offer without being penalized. 


2. The appraisal comes in higher than the agreed-upon purchase price

If the appraised value of the property is higher than the purchase price, that’s great news. You’ve just bought a home with some equity already built in. An example of this would be if the agreed-upon purchase price is $225,000 but the appraised value is $230,000. In that scenario, you would have $5,000 worth of equity before you even make your first payment. And luckily for you as the homebuyer, the seller can’t demand more money, and the sale of the home will move forward. 


3. The appraisal matches the agreed-upon purchase price exactly?

Appraised values often match the amount of the agreed-upon purchase price. If that is the case in your buying situation, then everything is fine and no additional negotiations are needed.


Getting an appraisal will be a requirement if you are obtaining a loan to purchase your dream home. And although it can sometimes be a rocky part of buying a home, remember, once you successfully maneuver past the appraisal process, you can move on to working with a title company to finish out the closing process and finally enjoy your new home. 



Source: Redfin


Dusty Rhodes Properties is the Best Realtor in Myrtle Beach! We do everything in our power to help you find the home of your dreams. With experience, expertise, and passion, we are the perfect partner for you in Myrtle Beach, South Carolina. We love what we do and it shows. With more than 22 years of experience in the field, we know our industry like the back of our hands. There’s no challenge too big or too small, and we dedicate our utmost energy to every project we take on. We search thousands of the active and new listings from Aynor, Carolina Forest, Conway, Garden City Beach, Longs, Loris, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Pawleys Island, and Surfside Beach real estate listings to find the hottest deals just for you!

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The Secret To Selling This Spring: Start the Prep Work Now

By Dusty Rhodes • February 17, 2025
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41 housing markets where inventory just tipped in favor of buyers

By Dusty Rhodes • February 10, 2025
Among the nation’s 200 largest housing markets, these 41 metro areas now have active inventory at or above 2019 pre-pandemic levels. While homebuyers and home sellers still see headlines about the housing market being a seller’s market and national home prices reaching all-time highs, a deeper look reveals that several regional housing markets have shifted, giving homebuyers some power. During the pandemic housing boom, from summer 2020 to spring 2022, the number of active homes for sale in most housing markets plummeted as homebuyer demand quickly absorbed almost everything that came up for sale. Fast-forward to the current housing market, and the places where active inventory has rebounded to 2019 levels (due to strained affordability suppressing buyer demand) are now the very places where homebuyers hold the most power. At the end of January 2025, national active inventory for sale was still 25% below January 2019 levels. However, more and more regional markets are surpassing that threshold. Among the nation’s 200 largest metro area housing markets, 41 markets ended January 2025 with more active homes for sale than they had in pre-pandemic January 2019. These are the places where homebuyers will be able to find the most leverage or market balance in 2025.

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By Dusty Rhodes • February 3, 2025
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In some locations, rental prices can easily cover your mortgage payments. Depending on how much you have left on your mortgage or if you have a low mortgage rate, the rental income from your old house may cover the monthly payments, plus homeowners insurance and property taxes you pay. However, if you’ve recently purchased your house and are looking to rent it out, your mortgage payments may be too high for a lease to cover them. Take a look at houses that compare to yours with regard to size and location. This should give you a ballpark figure on what price your house can lease for. If you aren’t on a tight timeline to leave your current home, take notice of how quickly similar houses in the area take to lease. If rental properties stay empty for more than a few weeks, you may have trouble finding consistent tenants. A real estate agent can help match you with a tenant or give you an idea of your rental prospects. They can also give you insight into whether your location is desirable for tenants. For instance, if it’s near a university or larger employer, you may be able to rent to students or to employees who relocate for that large employer. However, if the house is far from the city center, or you’re located in a residential neighborhood, you may have trouble finding tenants. Do you need equity from your current home? Why are you leaving your old house? Are you purchasing a new home? If you’re planning to upgrade to a larger home, you may need the money from the sale of your old one to place a down payment on your new house. If you have enough equity in your current home, it may make more sense to sell the house instead of renting it. If you’re able to afford the down payment on your new home without selling your current one, usually about 20%, then renting out your old one makes sense. What is the market like in your area? The housing market isn’t consistent across the country, and even different parts of larger metro areas may be more or less robust. If the current market is slow and you think you can sell your home for a higher price in a few years, then it may make sense to rent the house until housing prices rise again. However, if it’s a sellers’ market and you can get the maximum selling price for your home, then selling it may be the better option. Keep in mind that houses that have been rental properties, often have a harder time selling afterward. You may have more wear and tear in the home if multiple tenants have lived there, which may mean spending more to prepare it to show and sell. An experienced real estate agent in your area can help you determine the top vales of your home and whether or not the current market can support that selling price. Agents who have been in the area long enough to become familiar with the housing market are in a good position to help you determine the best time to sell. Will you live in the house again? Consider whether you plan to live in the house or the area again. You may be in a situation that requires temporary relocation, and you plan to return to the original home in a few years. Having a good tenant to live in the house can ensure that your home stays in good condition instead of sitting empty. You’ll also have income from the rental property and building equity in the old home and your new one. Do you have the time and money to be a landlord? For those who are new to investing in rental properties, it may seem easy to rent out their current home and enjoy passive income while paying down their mortgage. However, if this is your first time being a landlord, you may find leasing your property yourself challenging. First, landlords are responsible for making major repairs to the house. 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However, if you’re planning to build a portfolio of rental properties, then having one company manage them may be a better option. Property managers can help ensure that your house or houses stay full, including working with local agents, having open houses for prospective tenants, and quickly running background and credit checks for those applying for a lease. As a passive landlord in this situation, you’re able to free yourself of the obligation for emergency repairs and the time searching for people to live in your rental property. Consider rent-to-own Another option when you’re considering whether to sell or rent your house is to engage in a rent-to-own agreement. In these situations, the tenant will place a down payment on the house and make lease payments to you for a specified period. After the lease is up, then the tenant has the option to purchase the home. During the time they’re making lease payments, a portion of those payments will go toward the final price of the house. This option may work for you if the housing market in your area is stagnant, allowing you to cover the mortgage without entering into a long-term obligation to a rental property. These rent-to-own options can be beneficial for tenants, too, as their financial situation may improve enough over time that they’re able to obtain a mortgage. What makes a house a good rental property investment? Does your house have the potential to be a good income property? There are a few things to consider before listing your house for rent. You may have to make some minor repairs and upgrades to your property to attract good tenants who will take care of the house and pay on time. Fresh paint and carpet are usually a must and are required in some areas. The location of your investment property is one of the most important things in determining whether you’ll have steady tenants or be responsible for covering the mortgage out of pocket if the house sits empty. 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