A no-nonsense guide for Seattle and Snohomish County home sellers
“Home appraisals aren’t about what you think your house is worth. They’re about what a bank will actually loan on it.” — Jason Fox
When you’re selling your home, it’s easy to think the hard part is over once you’ve accepted a buyer’s offer.
But if that buyer is using a loan, there’s one more important step between you and closing: the appraisal.
We get this question all the time from sellers in Seattle, King County, and Snohomish County:
“How does the appraisal process work — and how is it different from a Home Inspection or a Comparative Market Analysis (CMA)?”
It’s a great question, and it could save you from unnecessary stress (or even a deal falling apart).
⚠️ Heads up: If a buyer is paying cash, there’s usually no appraisal involved.
But when a buyer is using a loan, the bank will always require one.
Let’s break it all down in plain language — like we’re explaining it to a 13-year-old — because understanding this process helps keep your deal on track and your sanity intact.
What You’ll Learn in This Guide
- What a home appraisal really is
- How appraisals are different from inspections, CMAs, and market value
- Step-by-step: how the appraisal process works
- What happens if the value comes in too low
- What to do if it comes in high
- Tips for sellers in Seattle and Snohomish County
- Real-world takeaways to help you win
What Is a Home Appraisal?
Here’s the most down-to-earth way to explain it:
An appraisal is when the buyer’s bank sends a licensed appraiser to see if the home is worth what the buyer is trying to borrow.
That’s it.
That’s the whole point.
The buyer wants a loan. The bank wants to make sure they’re not loaning more than the house is worth. So they hire a third-party appraiser — someone neutral — to double-check the home’s value based on recent sales.
Digging a Little Deeper: The Professional Side of Appraisals
Appraisals are completed by state-licensed or certified appraisers who are trained to develop unbiased opinions of value based on market data, physical property characteristics, and local trends. They follow guidelines laid out by the Uniform Standards of Professional Appraisal Practice (USPAP) — which means they must be ethical, impartial, and independent.
Most residential appraisals are done using the Sales Comparison Approach — which means comparing your home to similar properties (aka comps) that have sold nearby recently. The appraiser will adjust those comps up or down based on differences like square footage, condition, upgrades, location, and lot size.
In some cases, they may also use the Cost Approach (especially for new construction) or the Income Approach (for investment properties or multi-family homes).
The final product is a detailed report — usually 10–15 pages — that includes:
- Photos and descriptions of your home
- Recent comparable sales
- Market commentary
- Adjustments made to comps
- The final opinion of value
And again, this isn’t for the buyer or seller — it’s for the lender. They’re the ones who need to know that their investment is secure.
What a Home Appraisal Isn’t
Let’s clear up some common mix-ups. An appraisal is not the same as:
- ❌ A Home Inspection: That’s where the buyer checks the home’s condition.
- ❌ A CMA (Comparative Market Analysis): That’s what your broker uses to help you price your home.
- ❌ Market Value: That’s what buyers are actually willing to pay in today’s market.
If you want to see how all these values stack up, check out our deep dive on: Who Benefits? Seller-Procured Inspections vs. Home Inspections vs. Appraisals
Who Orders the Appraisal (and Who Pays)?
Let’s get the logistics out of the way:
- 🏦 The buyer’s lender orders the appraisal
- 💵 The buyer pays for it, usually $600–$900
- 📆 It usually happens after mutual agreement and the inspection
The buyer doesn’t choose the appraiser — it’s randomly assigned by a third-party service used by the bank.
And again, no loan = no appraisal. So cash buyers? They can skip this step altogether.
Step-by-Step: How Does the Appraisal Process Work?
Let’s say you’re selling a home in Lynnwood or Ballard, and the buyer’s using a loan. Here’s how it typically goes down:
1. Mutual Agreement
Once you and the buyer agree on a price and sign a contract, the lender kicks things off.
2. Appraisal Ordered
The lender contacts an appraisal management company to assign a local appraiser.
3. Appraiser Schedules a Visit
They coordinate with your broker to schedule a short walk-through of the home.
4. The Appraiser Comes By
They’ll measure square footage, check the layout, evaluate the overall condition, and make note of any upgrades.
🛠️ Pro tip: Leave a list of your improvements (roof, furnace, remodels) — that info matters!
5. They Research Comparable Sales (Comps)
The appraiser compares your home to similar recently sold properties nearby.
These comps must be:
- Close in location
- Similar in size
- Sold in the last 90–180 days
The closer and more recent, the better.
6. Final Appraisal Report Sent to Lender
The appraiser sends a detailed report (usually 10–15 pages) to the lender with the estimated value of the home.
7. You Get the News
Your broker will find out if the home appraised at, below, or above the sale price — and what happens next depends on that number.
Curious about What Buyers Should Expect When Closing on a House?
What Happens If the Appraisal Comes in Low?
Let’s say you sold your Edmonds home for $800K — but the appraisal comes in at $770K.
Here’s what can happen next:
- 🔄 Renegotiate: You and the buyer agree to meet in the middle
- ⬇️ Lower the price: You agree to match the appraised value
- 💰 Buyer covers the difference in cash: They pay the gap out-of-pocket
- ❌ Deal falls through: If no one can agree
These are stressful situations, but not impossible. Having a broker who can pull strong comps and advocate for your price can make a big difference.
We cover this in our post on roadmap to a successful closing, which is worth checking out.
What Happens If the Appraisal Comes in High?
Now we’re talking 🎉
A high appraisal means:
- Buyer has built-in equity
- Lender is happy
- You’ve likely priced your home right (or even got a great offer)
Tips for Sellers to Help the Appraisal Go Well
Here’s how to set yourself up for appraisal success:
✅ Clean and declutter – Make it easy for them to walk through
✅ Lights on, everything working – Show off the condition
✅ Provide a list of upgrades – Include dates and costs
Thinking ahead? A pre-listing inspection can also make your home more appraisal-ready.
Local Market Realities in Seattle and Snohomish County
In competitive areas like Downtown Seattle or Meadowdale, homes can sell for more than appraisers expect — especially when buyers get aggressive.
In those cases, even a great house can appraise low. That’s why it’s smart to have a local expert in your corner, like the folks at The Madrona Group.
We know how to price to sell and to appraise — and that’s a big difference.
Takeaways
- An appraisal checks what a buyer’s lender is willing to loan on your home
- It’s not the same as an inspection, CMA, or market value
- Appraisals only happen when the buyer is getting a loan
- Low appraisals can be negotiated, challenged, or worked around
- Clean, prep, and provide info to help the appraiser see your home’s full value
FAQ – Frequently Asked Questions
Q: What is a home appraisal in real estate?
A: It’s a professional estimate of your home’s value, used by lenders to decide how much they’ll loan a buyer.
Q: Do I need an appraisal if the buyer pays cash?
A: Usually not — most cash deals skip the appraisal unless the buyer requests one.
Q: Can I challenge a low appraisal?
A: Yes. Your broker can submit additional comps and request a review.
Q: How much does an appraisal cost in Washington State?
A: Typically between $600–$900, and it’s paid by the buyer.
Q: What’s the difference between an appraisal and an inspection?
A: Appraisals look at value. Inspections look at condition. size.
Final Thoughts on How Does the Appraisal Process Work
Selling a home in Seattle, King County, or Snohomish County comes with plenty of moving parts — and the appraisal is one of the most important ones, especially if your buyer is getting a loan.
It’s not personal. It’s not about style, upgrades, or your love for the place.
It’s the bank making sure they’re not over-lending on the property.
But just because it’s a lender step doesn’t mean sellers don’t have control.
By understanding what the appraisal process actually is — and how it’s different from things like CMAs, market value, or home inspections — you’ve already got a leg up. You know what’s coming, how to prepare, and what to expect.
And when your home is:
- Priced correctly
- Clean and easy to show
- Presented with a clear list of upgrades
- Supported by strong comparable sales
…you’ve already done most of the work that helps the appraisal come back strong.
If it doesn’t? That’s where having a local, experienced broker — like the team at The Madrona Group — can keep things on track. We know how to respond to low appraisals, negotiate smart, and protect your bottom line.
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