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If homes are selling rapidly in your area, the number of appraisals rises right along with the increased sales. The needed appraisals, will far exceed the ability of the local appraisers to give rapid service.
Lenders will also want to make sure the buyers will qualify for the loan, prior to ordering an appraisal. If it takes a little longer to get the buyer approved for one reason or another, the appraisal gets pushed back till the approval is done.
Reason for this is, if the loan is not going to go through there is no reason to get appraisals that will not be used to originate a loan, and leave only approved buyers getting appraisals quicker than if they got an appraisal for every contract.
So appraisals will be done after the buyer is approved (some take longer than others), and after the inspection is accepted and the inspection clause is signed off. Appraisals are not needed if those two clauses are not signed off. As appraisals in some areas are so far behind, not doing one till after they are sure the property will close if the appraisal is satisfactory, does not waste appraisals on properties that do not close, and doing an appraisal on every contract would make it harder to get appraisals done as they are needed.
And in house sales, a lot of contracts written do not close. Example: A friend of mine owned a major franchise real estate office. I know one month his saleswomen (no men worked for him) wrote 33 contracts. Only 3 of them closed, requiring only 3 appraisals. If they had done appraisals on the other 30 contracts, it would have set the whole appraisal system back for quite a while. Many other offices in the city, also had a lot of contracts that did not close. Add up all those failed contracts and do an appraisal on every one, and you could add 3 months to get an appraisal.
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