What is a real estate appraisal?

A real estate appraisal is an unbiased, professional evaluation of a property's market value based on its condition, location, and recent sales of comparable properties. Certified appraisers conduct appraisals for various purposes, including home sales, refinancing, estate planning, asset management, and tax assessments.

How does the appraisal process work?

The appraiser will typically visit the property and photograph the interior and exterior of the property, while taking any necessary measurements. The appraiser asks the property contact about the property’s history, including any significant updates or renovations. For commercial properties, documents such as leases, operating statements, and building plans are requested. After the visit, the appraiser performs research and analysis to produce an opinion of value, and delivers the final report to the client.

Why do I need a real estate appraisal?

A real estate appraisal is essential for determining a property’s fair market value, ensuring fair transactions, and meeting lender requirements. It’s often required for mortgage approvals, estate settlements, divorce proceedings, tax assessments, and investment decisions.

What is the difference between an appraisal and a home inspection?

An appraisal determines the property’s market value, while a home inspection assesses the property's condition, identifying potential repairs or safety issues for buyers.

An appraiser assesses factors such as a property’s size, location, condition, comparable sales, and market trends. For commercial properties, factors such as income, expenses, and occupancy are taken into account. The goal is to establish an objective and credible valuation.

A home inspection, on the other hand, focuses on the physical condition of the property. A home inspector examines the structure, electrical systems, plumbing, HVAC, roof, and other key components to identify potential issues or needed repairs. While an inspection helps buyers understand a home's condition before purchasing, it does not determine the home's value.

The appraisal process does typically involve an on-site visit (often referred to as an “inspection”), however it is much quicker and less involved than a home inspector’s visit. The appraiser observes the property’s condition and layout, taking photos and measurements, but does not perform extensive testing of building components.

How is my property’s value determined?

The three methods of real estate appraisal are:

• The Sales Comparison Approach (comparing the subject property to recent sales of similar properties)

• The Cost Approach (adding up the cost of building components and subtracting depreciation)

• The Income Approach (valuing the anticipated income stream from an investment property)

Additional factors that can impact value are:

• Property condition and improvements

• Location and neighborhood trends

• Market conditions and demand

• Lot size and square footage

How long does a property appraisal take?

The on-site inspection for a residential appraisal typically takes 30 minutes to an hour, depending on the property's size and complexity. The full appraisal report is usually completed within a week. For commercial appraisals, the on-site visit can take slightly longer, and the report is typically delivered within a few weeks.

How much does a real estate appraisal cost?

Appraisal fees vary based on property type, location, and complexity. Contact us for a free quote specific to your property.

What factors influence the value of a commercial property?

Key factors include:

• Rental income and lease agreements

• Operating expenses

• Occupancy rates

• Market demand and economic trends

• Location and zoning regulations

• Property condition and age

Do lenders require commercial appraisals?

Yes, most lenders require a commercial real estate appraisal before approving loans for purchases, refinancing, or development projects.

Do you provide appraisals for estate settlements and divorces?

Yes, we offer estate, probate, and divorce appraisals to determine property value for legal and financial proceedings. Our certified reports meet court and IRS requirements.

Can I hire my own appraiser for a mortgage loan?

Lenders require an appraisal from an approved appraiser within their network. However, you can hire a private appraiser for personal knowledge, pre-listing valuation, or dispute resolution.

How is a commercial property appraisal different from a residential appraisal?

Commercial appraisals are more complex than residential appraisals. They typically use income-based valuation methods (such as the income capitalization approach), whereas residential appraisals primarily rely on comparable sales. Commercial properties also require detailed market analysis and operating expense evaluations.

What happens after the property inspection?

After inspecting the property, the appraiser conducts extensive off-site work including:

• Analyzing leases and operating statements

• Researching comparable sales, rents, and capitalization rates

• Conducting market trend analysis (vacancy, absorption, construction pipeline)

• Modeling value using income, sales, and cost approaches

• Reconciling results into a final opinion of value

Inspection is typically the shortest part of the process—90%+ of the work is research and analysis.

Can an appraisal help me remove Private Mortgage Insurance (PMI)?

Yes. A new home appraisal can help you remove Private Mortgage Insurance (PMI) if your property's value has increased enough to lower your loan-to-value (LTV) ratio below 80%. If the appraisal shows that you have at least 20% equity in your home, you can request PMI cancellation with your lender. Many homeowners order an appraisal after making significant improvements or when property values rise to eliminate this extra monthly cost.

What’s the difference between a “fee simple” value and a “leased fee” value?

Fee simple value assumes the property is vacant and leased at market terms. Leased fee value reflects the actual lease(s) in place and the contract rent being paid. If the current rent is above or below market, fee simple and leased fee values may differ significantly. Lenders often require fee simple valuations; buyers and sellers may focus on leased fee, depending on their investment goals.

Why do appraisal fees vary so widely?

Fees may depend on:

• Size and complexity of the property

• Availability of comparable market data

• Intended use (litigation support often requires additional analysis)

• Report type/format (form, narrative, restricted)

• Required valuation scenarios (As-Is, As-Complete, As-Stabilized)

Broader trends in the real estate market also affect demand for appraisal services, which can influence fees.

What is the difference between a restricted appraisal report and a full narrative report?

Restricted appraisal reports are shorter and intended only for the client and specific named users, often for internal portfolio decisions. Narrative appraisal reports are longer, more detailed, and typically required by lenders, courts, and government agencies. Both report types must comply with USPAP, but narrative reports contain greater detail, analysis, and market evidence.

How do market trends influence commercial property values?

Appraisers track trends such as:

• Property values

• Vacancy rates

• Net absorption

• New construction pipeline

• Capitalization rate movements

• Rental rate growth

• Demographic shifts

Valuations are always tied to a specific effective date, meaning changes in market conditions after that date do not affect the opinion of value.

How do local market dynamics in the Puget Sound region affect commercial property values?

The Puget Sound market is highly segmented. Seattle’s urban core, Bellevue’s office district, Tacoma’s industrial corridors, and suburban communities like Kent, Lynnwood, and Federal Way each behave differently.

Key regional drivers include:

• Tech sector expansion and contraction cycles

• Port of Tacoma and Port of Seattle freight volumes

• Regional population growth, especially in Snohomish and Pierce Counties

• Transit-oriented development around LINK light rail expansions

• Limited land availability near job centers

Local values can shift due to these region-specific economic factors, so appraisers must incorporate up-to-date, submarket-level data.

How does the presence of major employers affect commercial appraisals in the Puget Sound region?

Appraisers in Seattle and the broader Puget Sound region must take into account the effects of large employers such as Amazon, Microsoft, Boeing, the University of Washington, the Ports of Seattle and Tacoma, and the military bases (Joint Base Lewis–McChord, Naval Air Station Whidbey Island). The presence of these employers contributes to:

• Multifamily demand

• Industrial tenant pools

• Office rents in certain submarkets

Areas like South Lake Union, Redmond, and Kent see values affected by proximity to these employers, while areas farther south (Lakewood, Lacey, Puyallup) benefit from JBLM staffing stability.

How do geographical factors influence commercial appraisals in the Puget Sound area?

Because the region is surrounded by water, factors such as commute patterns and access to ports and other linkages can heavily influence demand.
For example:

• Bainbridge and Bremerton depend on ferry reliability for office and retail activity.

• West Seattle’s values have been influenced by bridge and transit changes.

• Transportation bottlenecks often cause hyper-local valuation differences that appraisers must account for.

• Industrial properties in Seattle, Tacoma, and Everett can benefit from proximity to ports and railroads.

How does the availability of land affect commercial property values in cities like Seattle and Bellevue?

Much of Seattle and Bellevue is already built out, creating scarcity for entitled or easily developable parcels. This can lead to:

• Premium pricing for redevelopment sites

• Increased competition for tear-down opportunities

• Elevated land value relative to improvements