Home Buying in Doylestown>Question Details

Jennifer, Home Buyer in North Wales, PA

FSBO and sellers had an appraisal done a year ago. Now asking more than the appraisal. How long does an appraisal stay "current?"

Asked by Jennifer, North Wales, PA Tue Oct 26, 2010

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15
Depend of type of loan 6 months for FHA i think in Chicago
0 votes Thank Flag Link Tue May 21, 2013
You will get different opinions on a different matters, from banks, owners to reading the appraisal guidelines. Usually they last about 6 months since the value of properties keep increasing and or decreasing as the time goes by. I will strongly recommend working with your Bank to find out how long it really last. no matter what we will all say here it souldn't matter but I guess you need just an idea.

Good Luck,

John El Hanafi
0 votes Thank Flag Link Wed Apr 20, 2011
Appraisals are good (in Kentucky) for up to 4 months. An appraisal is an estimate of fair market value, it is not an exact science. The appraisal will have a range of value with the appraiser putting his professional opinion of value. It could be feasible the property is worth more. Check your current list to sale percentage for your local market area. List price and actual sale price differ.
Web Reference: http://www.ericjbarth.com/
0 votes Thank Flag Link Wed Apr 6, 2011
Jenn, Appraisals use to be good for a longer time period, however, most lenders now require an appraisal within 90 days of the purchase of the home. So an appraisal for a year ago is already way out dated. Also, it is getting a little trickier out there. Most lenders use to be willing to accept an appraisal from anyone, however, now they typcially want one from one of their in-network appriasers. The best thing you can do is find a lender you want to work with and then have that lender order an appraisal for you. This way you won't end up possibly paying for two of them (i.e. one for you and then one for your lender). If you have any further questions, I'd be happy to talk with you. Check out my website and give me a call.
Web Reference: http://www.chuckdress.com
0 votes Thank Flag Link Mon Apr 4, 2011
Appraisal stay current for approx. 6 months. Your lender will do an appraisal on your behalf if appraisal is less than what property owner wants they will never be able to sell the home.

Your buyers agent can assist with all these issues


Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Fri Mar 4, 2011
Hi Jennifer,
Appraisal is usually valid for 6 months but in changing market appraisal changes like everything else. I wouldn't give much weight to an appraisal done by sellers. If you have your own comps, you should offer according to your comps. Sellers appraisals will be biased to sellers and banks appraisals will be biased towards banks. You may see abig difference in both appraisal values.
Web Reference: http://www.Judysharma.com
0 votes Thank Flag Link Fri Mar 4, 2011
The appraisal, in my opinion, is worthless if you need financing because your lender will require a new appraisal (most cases) anyways. Typically 6 months is the maximum length of time one is good for, but depending on what the market is like in your area it may be 1-2 months if there is enough change happening. Good question Jennifer.
0 votes Thank Flag Link Sun Nov 7, 2010
An appraisal is an "Historical" look at data to determine an opinion of value. The value consideration is based upon sales which closed in the PAST. Therefore, if you have an appraisal done today, and the data is 1-6 months old, the appraisal would have a 'shelf' life of about 1-2 months. We are in a market where data appears to be changing every 60 days. If you look at sales prior to 06/30/2010 and then post that date, in most neighborhoods, values have come down due to the lack of the stimulus money.

An appraisal done a year ago would hardly be worth the paper it is printed on, in my opinion, and I was a very active appraiser for many years.

Carol Murray Cei
ReMax Action Realty
215.643.9661
carol@carolcei.com
Web Reference: http://www.carolcei.com
0 votes Thank Flag Link Sun Nov 7, 2010
Appraisals generally keep a shelf life of 6 months...if you are looking at it from a lenders stand point. However, when determining value I personally wouldn't give any appraisal much weight that has been completed more than 3 months ago...especially in todays market....an appraisal done a year ago doesn't reflect todays market...it doesn't matter where you live.
0 votes Thank Flag Link Thu Oct 28, 2010
Jennifer an appraisal is one persons opinion of value at a specific time. If you have 3 blind appraisals done on a property you will get 3 different opinions of value.
For some lenders on a short sale 3 months is to out of date and a new appraisal or BPO has to be ordered.
0 votes Thank Flag Link Thu Oct 28, 2010
First of all, it is a snapshot of that specific moment. But more importantly, that appraisal is not being done by the appraiser who really matters which is the appraiser doing the appraisal for the buyers loan. That is the appraisal that really matters. Depending soley on an appraisal to price a home is like using the rear view mirror covered with mud to help you drive down the interstate going 80...it just won't work!

When pricing a home for sale you need to look at what has sold over the past three months, what is currently on the market and how many have sold per month. Then you need to look at the absorption rate. This is the rate a which homes are sold per month. If you have 12 homes on the market in a specific area and there has only on average 2 homes sold per month over the past few months then the absortion rate would be 6 months of inventory. This will help your sellers decide if they want to sell quicker or slower.
REMEMBER: Being overpriced is like a prom date with a bad reputation. By the time you get the price down to where it should be, no one is interested because they have already seen you when you were overpriced.
0 votes Thank Flag Link Wed Oct 27, 2010
Erica is right. The apparaisal is only a snapshot. The appraisal uses current market conditions to valuate a property. Appraisers try to use the most recent sold comparables. They don't usually like to go back more them 3 months in a market like ours. It is changing too rapidly and values are still declining in most parts of the country.
Your seller needs to be educated. This is tricky since you have a vested interest. You might suggest that they speak to a lender of their choice about whether or not their appraisal is still good. This way a neutral party is letting them know. Hopefully the lender will also let them know that if the house doesn't appraise for their price, buyers would most likely not be able to get financing for it.
0 votes Thank Flag Link Wed Oct 27, 2010
An appraisal is only a snapshot of the market RIGHT THEN. It could change significantly within a few months. A year is definitely too old, in my opinion.
0 votes Thank Flag Link Wed Oct 27, 2010
Really, in my opinion, i always say that the appraisal is only good on the day it is issued. The local factory who employs a large amount of people in the market may close the next day, effectivley changng the local economy overnight. Lots of things can happen to change the market value of properties. As market conditions play a huge part in the valuation process, and as change is constant, the appraisal does not stay good so long.
On the flip side, an appraised value may still be good from 12 months ago, but that wouldnt be known until the current marekt is analysed.
Have a new appraisal ordered, or hire a buyers agent and they will do a BPO or a CMA.
0 votes Thank Flag Link Wed Oct 27, 2010
Jennifer,
The appraisal would definitely be considered out of date. 1- 3 months is ideal. Convincing the seller without an intermediary is a bit tricky however.

They aren't getting "professional" advice and are obviously unaware that a year old appraisal isn't really worth the paper it's printed on. You, as the buyer, aren't a credible third party, since your interest is contrary to theirs.

If there was ever a case to have a buyer's agent, this is it. But choose wisely. You need someone who can "consult" with the unrepresented seller in a way that is non-threatening. Educating them and working on your behalf at the same time takes a true professional.

Good luck!
Stacy Carter
Associate Broker
Better Homes & Gardens Real Estate Metro Brokers
0 votes Thank Flag Link Tue Oct 26, 2010
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