A home appraisal is a crucial step in the buying, selling, or refinancing process. It ensures that sellers get fair market value for their property and that buyers and lenders don’t overpay—especially in a competitive market like Seattle.
Key Takeaways
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Appraisers determine a home’s value based on size, location, and condition.
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Comparable sales ("comps") play a major role in the valuation, typically looking at homes within a mile that have sold in the past three to six months.
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The lender orders the appraisal, but the borrower covers the cost—ranging from $700 to $1,200 in the Seattle area, depending on property complexity.
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Appraisals are required for purchases, refinances, and home equity loans to ensure the home’s value aligns with the loan amount.
If you're considering an appraisal to gauge your home's worth, here’s what you need to know about the process in Seattle and King County.
When Do You Need a Home Appraisal?
In most cases, you’ll need an appraisal when:
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Buying a home
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Refinancing a mortgage
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Applying for a home equity loan or HELOC
However, some government-backed refinance programs, like FHA and VA streamline refinances, may waive the appraisal requirement.
Sellers might also opt for an independent appraisal before listing a home, but consulting a real estate agent for a comparative market analysis (CMA) is often a more cost-effective first step.
What Do Home Appraisers Look For?
Most home appraisals follow the Uniform Residential Appraisal Report (URAR), evaluating:
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Location: Proximity to amenities, views (Puget Sound, Lake Washington, or cityscape), and neighborhood desirability (Ballard, Queen Anne, Bellevue, etc.).
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Comparable Sales: Recent sales of similar homes in areas like Capitol Hill, Kirkland, or Renton.
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Neighborhood Trends: Housing demand, growth rates, and the presence of new developments.
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Property Details:
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Size: Square footage, lot size, and number of bedrooms/bathrooms.
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Condition: Roof age, heating/cooling systems (central air vs. baseboard heating), and materials used in construction.
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Upgrades & Features: Renovated kitchens, finished basements, and accessory dwelling units (ADUs) popular in Seattle’s housing market.
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For FHA or VA loans, stricter property condition guidelines apply.
What Can Hurt a Home Appraisal?
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Structural Issues: Foundation problems, water damage, or pest infestations.
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Outdated Systems: Knob-and-tube wiring, failing plumbing, or an aging roof.
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Market Conditions: Declining home values or an oversupply of housing in certain areas.
How Can You Improve Your Home Appraisal?
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Boost Curb Appeal: Trim landscaping and add fresh paint.
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Make Minor Repairs: Fix leaky faucets, patch drywall, and replace outdated fixtures.
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Highlight Upgrades: Provide documentation on major renovations or energy-efficient improvements.
How Much Does an Appraisal Cost?
In Seattle and King County, a standard home appraisal typically costs $400 to $800 but can be higher for complex properties. The fee is listed in your Loan Estimate.
How Long Does an Appraisal Take?
The on-site inspection usually takes one to three hours, with the full report delivered in one to two weeks.
What Happens if an Appraisal is Too Low?
According to Fannie Mae, about 8.5% of appraisals come in lower than the agreed price. If this happens:
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Negotiate: The buyer and seller may adjust the price.
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Pay the Difference: The buyer can cover the shortfall in cash.
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Challenge the Appraisal: Request a Reconsideration of Value (ROV) if errors are found in the report.
Appraisal vs. Inspection: What’s the Difference?
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Appraisal: Determines the home’s market value (required by lenders).
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Inspection: Evaluates the home’s condition and identifies potential issues (optional but recommended for buyers).
Including contingencies for both in a purchase offer can protect you from unexpected costs.
Navigating the Seattle housing market can be complex, but understanding the appraisal process will help ensure you’re making informed decisions. Whether you’re buying in Green Lake, refinancing in West Seattle, or selling in Redmond, an accurate appraisal is key to a smooth real estate transaction.
