How soon can a new appraisal be used?

[Christine Raczkiewycz]

How soon can I use the appraised value of a property that was purchased for cash instead of the purchase price?  I've been told that I can use the appraised value after 12 months of ownership.  Otherwise, any loan I'll apply for will use the purchase price as the value.  I can't find anything online that will give me a concrete answer.    

[Josane Cumandala]

Residential real estate appraiser here. I'm sure I'm understanding the question correctly so let me know if I misunderstood you. 

An appraisal has an effective date, usually the date of inspection, and it is valid for that effective date only. That is because markets are changing all the time. It is not appropriate to use an appraisal from twelve months ago as your sole basis for today's market value. That value could go up or down depending on the specific factors of your market.

If you apply for a refinance or other loan using your property for collateral, the bank will most likely order a new appraisal and base the loan on the current appraised value. If you're wondering how long it will take for the property to appreciate in value in order to give you some equity to take out....it depends. I wouldn't say 12 months is a hard and fast rule. Can't paint in such broad strokes, it all comes down to your market.