Useful Life of an Appraisal

Posted By: Luv2run

Useful Life of an Appraisal - 09/24/21 04:03 PM

I am curious to see what other institutions consider to be a reasonable period of time regarding the useful life of appraisals. Specifically, what is the maximum age of an appraisal that can be used to support a new transaction, and does policy differ depending on the type of transaction (commercial vs retail)? We are looking at our options and wanted to get a feel for what other lenders are doing.

Posted By: rlcarey

Re: Useful Life of an Appraisal - 09/24/21 04:26 PM

In our market over the last year - the useful life of a residential appraisal was about 15 minutes after the ink dried, as the house would sell for another $10-15K within the next 15 days. It is going to vary greatly and even if you choose to reuse an appraisal, you need to perform a review to make sure it is still accurate. It is all going to depend on the property and the market.