For how long is an appraisal typically valid?

An appraisal is typically valid for 12 months because it reflects the value of the property at the time of the assessment. This timeframe is considered sufficient for most real estate transactions, as property values can fluctuate due to changes in the market, neighborhood dynamics, economic factors, and other conditions that affect property worth.

Within a year, the data and conditions under which the appraisal was performed may become less relevant, thus necessitating an updated appraisal for new assessments, refinancing, or new sales. Consequently, lending institutions often rely on the 12-month timeframe to ensure they base their decisions on current and accurate information regarding property value. This practice helps in mitigating risk for lenders and ensuring that borrowers are not over-leveraged based on outdated valuations.