How do appraisers determine what your home is worth, and what parts of that process can you actually influence?

A home appraisal is a critical step in most real estate transactions, especially when a buyer is using financing. The appraisal determines the fair market value of a property based on a combination of data, local insight, and professional judgment. As a homeowner or future seller in the Tacoma and South Puget Sound area, understanding what drives that value can help you navigate your next move with confidence.

Location Still Reigns Supreme

When it comes to real estate, the old saying holds true: location matters. Appraisers assess the location of your home relative to key features such as shopping, public transportation, employment hubs, and outdoor recreation.

In the South Puget Sound region, homes with easy access to I-5, proximity to popular neighborhoods like North Tacoma or Proctor, or scenic views of Commencement Bay often see higher valuations. Market demand in your specific neighborhood also plays a major role, especially in dynamic areas where prices can shift quickly.

The Property Itself: Size, Style, and Condition

The physical characteristics of your home are the next major factor. This includes:

• Square footage of finished living space

• Number of bedrooms and bathrooms

• Overall layout and flow of the home

• Type of construction and architectural style

• Age of the home and any recent updates

Appraisers also take note of your home’s condition. While a beautifully staged space won’t directly add dollars to your appraisal, deferred maintenance or visible damage can certainly lower the number. A well-kept home with updated systems, modern finishes, and recent upgrades will typically appraise higher than one needing major repairs.

Comparable Sales in the Area

The most objective input in an appraisal is the set of recent comparable sales, often called "comps." These are homes in your area that are similar in size, age, condition, and style, and that sold recently, usually within the last 90 to 180 days.

In Tacoma and surrounding neighborhoods, this can vary significantly block to block. For example, a craftsman in Stadium District may have very different comps than a split-level in South Hill, even if the homes are similar in size. Appraisers adjust for differences between the comps and your home to reach an estimated value.

Market Conditions and Buyer Demand

Current market dynamics can also influence an appraisal. In a hot market with low inventory, values may be trending upward, which can affect the appraiser’s adjustments and risk considerations. In slower markets, appraisers tend to be more conservative.

In the South Puget Sound area, the market has seen seasonal shifts as well as changes in buyer demand based on mortgage rates and inventory levels. Appraisers consider those trends alongside long-term neighborhood stability and growth.

What You Can (and Can’t) Control

As a homeowner, you can’t control your location or the broader market, but you can influence condition, maintenance, and presentation. Before an appraisal, make sure:

• All systems and appliances are in good working order

• The exterior is tidy and well-maintained

• You’ve completed any minor repairs or cosmetic updates

• You have a list of recent upgrades or improvements to share

These efforts won’t override market conditions, but they can help ensure your home is valued fairly and favorably.

Final Thoughts

Whether you're buying, selling, or refinancing, understanding how appraisals work helps you make more informed decisions. In our local market, where property types and values can vary widely, it's smart to work with a Realtor who knows what influences your home's value and how to position it effectively.

Thinking about selling your home in Tacoma or the South Puget Sound area?
Let’s talk through your options and what your home might be worth in today’s market. Reach out to me to grab a coffee and discuss your goals.