Introduction

When can you get an exception to your appraisal, and what does that actually mean? It's essential to watch part one of our series for a complete understanding. This part focuses on the exceptions to appraisals and the situations in which they apply. Let's dive into the details to help you make informed decisions when buying a home in Seattle.

When Are There Exceptions to Appraisals?

Paying Cash

One of the most straightforward exceptions to appraisals is when you're paying cash for your home. Without the involvement of a bank, there's no need for an appraisal.

Down Payment Size

The size of your down payment can also lead to an appraisal exception. Home buyers typically put down anywhere from 3.5% to 20% of the home's purchase price. If your loan amount is less than 80% of the home's value, meaning you're putting 20% or more down, you might qualify for an appraisal waiver. This waiver saves you the cost of an appraisal, which usually ranges from $700 to $900. However, without this third-party opinion, you're missing out on an independent valuation of your future home.

If you're putting down 30% or more, an appraisal waiver is even more likely.

Desktop Appraisal

A desktop appraisal is another form of exception. If you're putting 20% or more down, a desktop appraisal may be used. This process relies on tax records and multiple listing service (MLS) data to determine the home's value. Instead of a thorough on-site visit, the appraiser might drive by the property or evaluate it remotely.

Why Do These Exceptions Exist?

The primary reason for these appraisal exceptions is the reduced risk for the bank. When you contribute more money to the purchase, the loan amount decreases, lowering the bank's risk. Understanding these exceptions can save you money and help you navigate the home buying process more efficiently.

In summary, knowing when and how appraisal exceptions apply can be a significant advantage. Whether you're paying cash, putting down a substantial down payment, or opting for a desktop appraisal, these exceptions can simplify your home buying journey in Seattle.