Introduction

Appraisals can be confusing, especially when you're in the process of buying a home. However, understanding the exceptions or alternatives to a standard appraisal can save you time, money, and stress. Here’s what you need to know about these appraisal exceptions to make your home buying journey in Seattle smoother.

1. Paying Cash: No Appraisal Required

If you’re paying cash for your home, you can skip the appraisal process entirely. Since there’s no lender involved, you don't need to validate the home's value for a mortgage. This allows you to determine the value of the home based on your own judgment and preferences.

2. Appraisal Waivers: More Than 20% Down Payment

When you put down more than 20% on a home, lenders often consider you less of a risk. In such cases, they might offer an appraisal waiver, allowing you to bypass the traditional appraisal. This not only speeds up the closing process but also saves you the cost of an appraisal. However, be mindful that skipping the appraisal means missing out on an independent third-party valuation of your home.

Appraisal waivers are more commonly offered when your down payment is closer to 30% or more of the purchase price.

3. Desktop Appraisals: A Hybrid Approach

Desktop appraisals are another option available to buyers who are putting down more than 20%. Instead of a full in-person appraisal, the appraiser uses tax records and data from the Multiple Listing Service (MLS) to assess the home’s value. This method can be faster and more convenient, though it may not be as thorough as a traditional appraisal.

Conclusion

Understanding these appraisal exceptions can make your home buying process more efficient and less stressful. Whether you’re paying cash, qualifying for an appraisal waiver, or considering a desktop appraisal, knowing your options helps you make informed decisions. Remember, home buying is fun when you’re equipped with the right knowledge.