How Long Does a Home Appraisal Last in Chicago?

A home appraisal is a crucial step in any real estate transaction and helps all parties involved in some way or the other. You will need an appraisal for selling a home, buying one, or refinancing your mortgage.

A common question for people who get a home appraisal or are going to get one is how long does it stay valid for? Well, the validity of a home appraisal in Chicago depends on several factors, like your lender requirements, specific location, market conditions, etc.

In this blog, we will cover each factor in detail so you are more informed and confident about your appraisal process.

How Long is a Home Appraisal Valid in Chicago?

A general rule of thumb is that most appraisals are valid for 90-120 days, depending on the lender and the loan type. For FHA or VA loans, the appraisals are usually valid up to 6 months. For conventional loans, like Fannie Mae and Freddie Mac, appraisals can stay valid for up to a year.

When we talk about ‘staying valid’, we don’t mean appraisals come with an expiration date or such. It just means that the lenders usually don’t honor the appraisal after that duration.

So, for example, if you are buying a house and get an appraisal in January but then don’t close until July, your lender may require a new appraisal. To avoid paying the cost of the appraisal, you should try to close in a timely manner.

Factors That Can Affect Appraisal Validity

There are several factors that lengthen or shorten the validity of a home appraisal.

The most common factor is the market volatility. Chicago’s real estate market is a fast-moving one. House values change very rapidly, and this can shorten the validity of an appraisal.

Any major changes, both improvements and damage, to the property can also void the appraisal. For example, if there’s a storm after the appraisal that damages the roof of the house, then a new appraisal will be required. Or if the homeowner gets some major renovation done to their home, that may also require a new appraisal.

Some Expert Tips

Below are some tips to avoid causing your home appraisal to expire and ending up paying twice for it.

Close Quickly and Watch Your Schedule

The first and foremost tip is to close quickly.

During the spring season, which is widely considered the best time to sell, houses come in and go fast. In such a market, you usually don’t need to worry about your appraisal expiring. However, in Nov and Dec, the buyer activity decreases and the trends reverse. 

With holiday seasons and harsh weather, closing usually takes a very long time. So, we recommend not getting an appraisal yet if you think you can’t close within the next 2-3 months.

Communicate With Your Lender

We always recommend that you communicate with your lender and learn about their specific policies. Although we mentioned general guidelines for different types of loans, specific lenders will have their own guidelines. By knowing the exact policies of your lender, you will be able to make more informed decisions.

Wrapping Up

We hope you found this guide helpful, and we are able to clearly explain different points as they relate to the validity of a home appraisal.

Please feel free to reach out to us with any questions that you may have. If you are in need of an appraisal, try giving AnDel Appraisals a shot. We have been appraising homes in Chicago for over a decade and will for sure provide you with an exceptional service!