What Is an Appraisal in Washington State Real Estate?
An appraisal in Washington real estate is a lender-ordered valuation of a property used to confirm that the home supports the buyer’s loan amount under the Financing Addendum (NWMLS Form 22A).
The appraisal protects the lender — not the buyer — by ensuring the bank is not lending more than the property is worth based on recent comparable sales.
If the home does not appraise at or above the purchase price, the transaction may need to be renegotiated, restructured, or terminated under the financing contingency.
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How the Appraisal Works in Washington
After mutual acceptance, the buyer’s lender orders an appraisal through a third-party appraisal management company. The appraiser visits the property, measures it, photographs it, and compares it to recent closed sales (called “comps”) in the same area.
The appraiser adjusts for differences in:
- Square footage
- Bedroom and bathroom count
- Condition and upgrades
- Lot size
- Location
The goal is to determine a supported market value based on closed sales — not current listings or emotional competition.
Who Is Involved
In a Washington transaction, the appraisal typically involves:
- The lender (who orders it)
- The appraiser (licensed third party)
- The buyer (who pays for it)
- The listing and buyer’s agents
The seller does not order the appraisal and does not control the outcome.
When the Appraisal Happens
The appraisal usually occurs 1–2 weeks before closing, after the buyer has completed inspections and the lender has reviewed the loan file.
It is one of the final steps before final loan approval.
What Happens If the Appraisal Comes in Low
If the appraised value is lower than the purchase price, four things typically happen in Washington:
- The seller reduces the price
- The buyer brings additional cash to closing
- The parties renegotiate terms
- The transaction terminates under the financing contingency
If the buyer included an Increased Down Payment Addendum or waived appraisal protections, the buyer may be required to cover the difference.
Low appraisals do not automatically kill the deal — they trigger negotiation.
Bottom Line
An appraisal in Washington protects the lender by confirming the property supports the loan amount under Form 22A.
It does not determine what the home is “worth” emotionally or competitively — it determines what the bank is willing to lend against.
Understanding this difference prevents panic and protects your negotiation position.
FAQ
Who orders the appraisal?
In Washington, the buyer’s lender orders the appraisal (usually through an appraisal management company) to confirm the property supports the loan amount under the Financing Addendum (NWMLS Form 22A).
Who pays for the appraisal?
The buyer typically pays for the appraisal as part of the loan process, even though the appraiser is working for the lender.
Can a low appraisal kill the deal?
A low appraisal does not automatically kill the deal. In Washington, the parties usually renegotiate price or terms, the buyer may bring additional cash, or the buyer may terminate under the financing contingency if it can’t be resolved.
How long does it take?
The on-site visit is usually short, but the full appraisal process often takes about 1–3 weeks from ordering to receiving the report, depending on lender and appraiser availability.