Appraiser
A trained professional who estimates the market value of real property. The written opinion of value they produce, called an appraisal, is commonly ordered when property is bought, sold, mortgaged, insured, or condemned.
Key Takeaways
- An appraiser is paid to produce an independent, supportable opinion of value, not to reach a number that helps a transaction close.
- In Washington, only a person certified, licensed, or registered under chapter 18.140 RCW may prepare an appraisal of real estate located in the state.
- Washington issues four appraiser credentials: state-registered trainee, state-licensed, state-certified residential, and state-certified general.
- A broker's price opinion or comparative market analysis is not an appraisal and does not require an appraiser credential.
What It Means
An appraiser is a trained, credentialed professional who develops and communicates an independent opinion of value for a specific property, as of a specific date, for a stated purpose. The defining feature of the role is not the arithmetic. It is the independence. An appraiser is engaged to reach a supportable conclusion and holds no stake in whether that conclusion helps a sale close.
Appraisers get pulled into a transaction whenever a decision turns on what a property is worth to somebody other than the buyer and the seller. A lender orders one before funding a loan, because the property is the collateral behind the loan. An estate orders one to divide assets fairly among heirs. Insurers, condemning authorities, tax appeal boards, and divorcing spouses all order one for the same underlying reason: a neutral number is needed. The written report that results is an Appraisal.
Because that conclusion carries real weight, the work is regulated as a profession rather than left to the market. Credentials are tiered by the complexity and value of the property the holder may handle, and the appraiser answers to a state regulator for the quality and honesty of the report.
How It Works in Washington
In Washington, appraisal is a credentialed occupation governed by chapter 18.140 RCW and administered by the Department of Licensing. RCW 18.140.020(4) is the operative sentence: a person who is not certified, licensed, or registered under the chapter may not prepare any appraisal of real estate located in this state.
The Department issues four credentials, in ascending scope: state-registered real estate appraiser trainee, state-licensed real estate appraiser, state-certified residential real estate appraiser, and state-certified general real estate appraiser. RCW 18.140.010 ties scope to credential. A state-certified real estate appraiser is certified to develop and communicate real estate appraisals of all types of property. A state-licensed real estate appraiser is limited to one to four residential units and to nonresidential property having transaction values specified in rules adopted by the director. A trainee works under a supervising appraiser and logs experience toward a higher credential.
The exemption every licensee should know sits in RCW 18.140.020(2), which permits compensation for a broker's price opinion prepared by a real estate licensee under chapter 18.85 RCW. That subsection is the statutory footing for the Comparative Market Analysis a Broker hands a seller. It is a price opinion, not an appraisal, and describing it to a client as an appraisal crosses the line chapter 18.140 RCW draws.
Example
Kim and Tomas go under contract on a Bellingham house at $625,000, planning to put 20 percent down and borrow $500,000. Their lender orders an appraisal from Priya, a state-certified residential real estate appraiser. Priya inspects the property, analyzes recent neighborhood sales, and reports an opinion of Market Value of $598,000.
The lender will lend against the lower of contract price or appraised value. Eighty percent of $598,000 is $478,400, so the loan drops by $21,600 from the $500,000 the buyers expected. That leaves them three moves: bring the extra cash, which raises their total down payment to $146,600, renegotiate the price with the seller, or terminate if their financing contingency allows it.
What nobody in the deal can do is call Priya and ask her to revisit the number because the contract needs $625,000. Her independent opinion is the product the lender purchased, and that independence is the only thing making it useful.
Common Mistakes and Exam Traps
- An appraisal is an opinion of value, not a determination of value. The appraiser estimates; the market decides.
- In Washington a licensed broker may give a price opinion but may not prepare an appraisal. The credential, not the quality of the analysis, is what separates the two documents.
- Washington appraiser credentials are tiered by scope. A state-licensed appraiser is not the same as a state-certified appraiser, and only the certified levels reach all property types.
- A home inspection and an appraisal answer different questions. The inspector reports on condition; the appraiser reports on value.
Where you'll learn this
Frequently Asked Questions
What is the difference between an appraiser and a broker who prices a home?
An appraiser holds a credential under chapter 18.140 RCW and prepares appraisals. A broker holds a license under chapter 18.85 RCW and may be compensated for a broker's price opinion under RCW 18.140.020(2), which is not an appraisal.
What credential levels does Washington issue to appraisers?
Four: state-registered trainee, state-licensed, state-certified residential, and state-certified general. Each level authorizes a wider range of property types and transaction values than the level below it, per RCW 18.140.010 and the rules adopted under it.
Can the buyer or seller influence the appraiser's conclusion?
No, and trying to is the fastest way to make the report worthless. The lender is buying an independent opinion of value, so pressure to hit a target number defeats the whole reason the appraisal was ordered.