Appraisal, Sale Price, CMA, Comps and Assessed Value: Which Number Is Which?
Five terms, five different numbers, and five different people behind them. Here is what each one means, who is responsible for it, and who pays.
The quick take
Five terms get mixed up constantly, and each one answers a different question. The sale price is what the buyer and seller agree on. An appraisal is a licensed appraiser’s opinion of value for the lender. A CMA is your agent’s opinion of what a home is likely to sell for. Comps are the recent sales those opinions are built from. The assessed value is the county’s number for property tax. They are often different numbers for the same house, and that is normal.
Why these get confused
All five are about “what a home is worth,” so people use them interchangeably. But they are made by different people, for different reasons, at different times. A buyer can hear all five in a single week: a CMA before making an offer, a sale price when the offer is accepted, an appraisal from the lender, the assessed value on the county tax notice, and comps in every conversation along the way.
The five terms side by side
| Term | Who creates it | Who pays | What it is used for |
|---|---|---|---|
| Sale price | Buyer and seller, through negotiation, with their agents | The buyer pays it to the seller at closing | The deal itself, and the basis for some closing costs and the excise tax |
| Appraisal | A licensed appraiser, working independently. The lender orders it | Usually the buyer, as part of the loan costs | Tells the lender how much the home supports as collateral |
| CMA (comparative market analysis) | A real estate agent or broker, for their client | Usually no charge as part of working with an agent | Pricing a listing, and deciding what to offer |
| Comps (comparable sales) | Pulled from MLS and public records by whoever needs them | Usually no charge | The evidence behind a CMA, an appraisal and often an assessment |
| Assessed value | The county assessor, on the county’s own schedule | No one pays for the value. The owner pays property tax based on it | Calculating the property tax bill |
Sale price
The sale price is the one number that is actually a decision. It is whatever the buyer and seller agree to in the purchase contract. It can be above or below the list price, the CMA, the appraisal and the assessed value. Nobody tells the parties what it must be, and no one can set it for them. Your agent advises, but the buyer and seller make the call. Because it is a negotiated price, it is also the number that becomes recorded history for the home and the next set of comps.
The sale price also drives money. It sets some of the closing costs, and it is the basis for the Washington real estate excise tax, which the seller pays at closing. A higher price means a higher excise tax bill. We cover how that works in our Closing terminology post.
Appraisal
An appraisal is a formal opinion of value written by a licensed appraiser, usually when a buyer is using a loan. The lender orders it, because the lender needs to know the home supports the loan amount if something goes wrong later. Appraisers are expected to work independently, and your agent, the seller and the buyer do not choose the number.
Who orders it: The lender. Buyers do not normally pick the appraiser.
Who pays: Usually the buyer, as part of the costs of getting the loan.
Who does it: A licensed appraiser. It is a formal report, and it relies on comps adjusted for differences in size, condition and features.
What you get: Under federal rules, the lender must give you a free copy of the appraisal promptly, and no later than three business days before closing. Ask for it and read it.
No loan, no appraisal: A buyer paying all cash is not required by a lender to get one, though some buyers order one anyway.
The appraisal is where the other numbers meet reality. If it comes in below the sale price, the buyer faces an appraisal gap. Read more in our post The Appraisal Gap: What Happens When the Home Appraises Low.
CMA (comparative market analysis)
A CMA is an agent’s opinion of what a home is likely to sell for, built from recent comps and the current competition. It is more informal than an appraisal. A good CMA looks at condition, updates, lot, view and timing, and often gives a range rather than a single number.
Who does it: A real estate agent or broker, usually for a seller who is pricing a listing or a buyer who is deciding what to offer.
Who pays: Usually no one. Agents typically prepare it as part of working with you. Ask if you are unsure.
What it is not: An appraisal. A lender does not use it in place of one, and it is an opinion, not a guarantee.
Comps (comparable sales)
Comps are recent sales of homes similar to yours in size, age, condition and location. They are the raw material. Agents use them to build a CMA, appraisers use them to support an appraisal, and owners use them to challenge an assessed value. Because someone has to decide which sales are truly similar, two people can look at the same neighborhood and choose different comps. That is one reason their numbers can differ.
No single person is responsible for comps. Whoever is making the opinion chooses them, and a good professional can explain why those sales were picked and what was adjusted.
Assessed value
The assessed value is the county’s estimate of the property’s value, used to calculate property tax. In King County, the Assessor sets it each year and mails a value notice. Each property’s share of the property tax bill is based on its assessed value. It is not an opinion of what the home would sell for today, and it does not decide the sale price or the appraisal.
Who does it: The county assessor, not your agent, lender or an appraiser you hire.
Who pays: No one pays for the value. The owner pays property tax, which is calculated from it.
If you disagree: You can appeal to the King County Board of Equalization. The petition is due by the later of July 1 of the assessment year or 60 days from the mailing date on your value notice. Check your notice for the exact date, because it is strictly enforced.
One house, five numbers
Take a home that is listed for $825,000. Here is how all five might look. These numbers are invented to show how they differ.
- The county assessed value on the tax notice is $720,000.
- The listing agent’s CMA suggests a range of $810,000 to $830,000, based on comps from the last few months.
- Those comps are four recent nearby sales between $803,000 and $834,000.
- The buyer and seller agree on a sale price of $825,000.
- The lender’s appraisal comes in at $815,000, using its own comps.
Nothing is wrong here. Each number answers a different question. The $10,000 difference between the sale price and the appraisal is an appraisal gap, and that is the one that affects the deal, because the lender will lend based on the lower figure.
Who is responsible for what
| Question | Answer |
|---|---|
| Who decides the sale price? | The buyer and the seller, together |
| Who decides the appraised value? | The appraiser, independently. The lender orders it |
| Who prepares the CMA? | The agent or broker, for their client |
| Who chooses the comps? | Whoever is making the opinion: the agent, the appraiser or the owner |
| Who sets the assessed value? | The county assessor |
| Who pays for the appraisal? | Usually the buyer, as part of the loan costs |
| Who pays for the CMA? | Usually no one, as part of working with an agent |
| Who pays property tax based on the assessed value? | The owner |
| Who pays excise tax based on the sale price? | The seller, at closing |
From our experience
We have seen owners surprised that their county tax value was well below what their home sold for, and buyers surprised that an appraisal came in under their agreed price. In both cases the numbers were doing their jobs. They just had different jobs.
What this means if you are buying
- Use the CMA and the comps to decide what to offer. Do not use the assessed value as a guide to the price.
- Expect the lender to order an appraisal, and plan for what you would do if it comes in below the sale price.
- Ask for your free copy of the appraisal and read it.
- Remember that the assessed value is not the same as what your property tax will be, and that it can change after you buy.
What this means if you are selling
- Ask your agent for a CMA with the comps behind it, so you can see why a price makes sense.
- Do not price your home from the assessed value. It serves a different purpose.
- Be ready for the appraisal. If it lands below your sale price, the buyer may ask to renegotiate or bring more cash.
- Remember that your sale price sets your excise tax, so ask your agent for an estimate of what you will net.
- Keep records of updates and improvements. They help an agent and an appraiser see what makes your home different from the comps.
Questions to ask your agent
- Which comps did you choose, and why those?
- How is your CMA different from what an appraiser will do?
- How likely is it that this home appraises at the sale price?
- What is the assessed value, and does it matter for this decision?
Want the full list of terms?
See our plain-English glossary of real estate terms: www.kellyazzarello.com/jargon
Questions? We are glad to help.
If any of this raises a question about your own situation, reach out. If you need an answer faster, call and we will talk it through.
Kelly Azzarello Real Estate | Compass
Email: kelly@kellyazzarello.com
Phone: (425) 830-6457
Web: www.kellyazzarello.com
Sources and credits
We looked to NWMLS first and then Compass. Neither publishes a plain-language comparison of these terms, so the points above draw on the sources below, in our own words. All dollar figures are invented examples. General information only, not legal or financial advice. Confirm current details with your agent, lender or the county, since rules change.
- Northwest Multiple Listing Service (NWMLS)
- Freedom Mortgage, Comparative Market Analysis
- Consumer Financial Protection Bureau, Delivery of appraisals under the ECOA Valuations Rule
- King County Board of Equalization, Appeal Property Tax
- Manaky, Property Tax Appeals in King County
- Washington Department of Revenue, Real Estate Excise Tax
Should I Get a Pre-Listing Inspection Before I Sell?
A pre-listing inspection gives you the same kind of report a buyer's inspector would write, before a buyer is waiting for your answer. Pros, cons and when it is worth it.What a pre-listing inspection is
A pre-listing inspection is a home inspection you order before you list the home. It gives you the same kind of report a buyer's inspector would write, before a buyer is waiting for your answer.
Our default is to have homes pre-inspected before they are put on the market. The thinking is simple: knowing is better than being surprised by bad news. We have discovered many issues thanks to pre-inspections that would otherwise have surfaced during the buyer's inspection period, potentially losing the sale and having to put the home back on the market.
Addressing what you find can be done in three ways:
· Fix it before the buyer asks. Pay for the repair before or during listing.
· Offer money back at closing. Instead of repairing it, you give the buyer a credit and they arrange the fix themselves. Lender limits on credits vary by loan type, so check with your agent first.
· Lower the price. If the roof is near the end of its usable life, you price the home below what it would be with a new roof. The buyer sees the issue already reflected in the price.
If you don't have a seller pre-inspection, consider keeping some funds in reserve in case the buyer's inspection finds something. The same three options apply, but you will be working through them during the buyer's inspection period instead of on your own schedule.
Pros and cons
| Pros | Cons |
|---|---|
| You find problems first, with time to get quotes and choose a contractor. | It costs money up front, and you pay whether or not you sell. |
| You avoid rushed repairs and "emergency" pricing after a buyer's inspection. | What you learn becomes something you know. If it is a material issue, it may need to be disclosed on the seller disclosure statement (Form 17). |
| It helps you complete the disclosure statement accurately. | Buyers may still do their own inspection, so it does not replace theirs. |
| You can price the home with the real condition in mind. | Findings can lead to repair costs you hoped to avoid. |
| A clean report can build buyer confidence and reduce surprises. | A report can age. If conditions change, it may need an update. |
| It can make negotiation smoother, because both sides see the same facts. | Some buyers may ask for more because they see the list. |
When it is most worth doing
· Older homes, or homes with deferred maintenance.
· Crawl spaces or attics that no one has checked in years (see The Number One Thing We Recommend Before You List: Inspect the Crawlspace).
· Estate and parent-sale situations, where the seller does not know the home's history (see [LINK to Topic 17: What Do I Have to Disclose When I Sell My Home, and What If the Home Is in an Estate?] and [LINK to Topic 19: Selling a Parent's Home After a Move for Aging Issues]).
· Homes with known or suspected moisture, pest, sewer or roof concerns.
· Sellers who need to move quickly and cannot afford a sale that falls through due to inspection issues.
Think about specialty inspections
A general inspector may recommend more specific inspections, such as a sewer scope, a pest inspection, a chimney inspection or a crawl space review. These answer one specific type of issue, and often require a special license or experience.
How to use the report
1. Read it with your agent. Sort items into safety, major condition and minor.
2. Find and correct causes first. Fix the leak before replacing the stained drywall.
3. Decide what to fix, what to disclose and what to price in. Get written estimates for items you will not fix before listing. Form 17 must be completed by the seller, not the agent.
4. Keep receipts and warranties for any work done, and be ready to share them.
5. Decide whether to share the report. Ask your agent how this works, and how it affects your disclosures.
What not to do
· Do not order an inspection and then ignore what it finds.
· Do not hide a known problem. Disclose material issues that are current, or that were recent and corrected, where Form 17 asks. Insurance claims, such as fire, water damage or an accident that damaged the home, are common examples, but not the only ones.
· Do not hire a friend (or contractor) as the inspector. Use a qualified, licensed inspector.
· Do not use a report that is old or no longer matches the home. Treat it as out of date when anything significant has changed since it was written (a leak, storm damage, a repair or remodel, a long vacancy) or when enough time has passed that a buyer could reasonably question it.
From Our Own Experience
An estate listing we had did not have a seller pre-inspection. It was an older home, but "everything worked" and the estate representative felt it was not necessary to pre-inspect, to list it "as is", and to price it accordingly.
The buyer's offer was accepted with an inspection contingency, which included a sewer scope. Unfortunately the sewer scope found that the sewer main had collapsed in two places. The house was unsellable without these being corrected, and that took time, inspections, planning, and money. While the fix would have been the same, and might have cost slightly less if found in a pre-inspection, it would have been far less stressful. The home would probably still have gone on the market at the planned time.
There is no blanket solution or direction here. It is far more important to understand the potential impacts than it is to always do (or not do) something like a pre-inspection. The sellers need to be comfortable with their choices, as well as understand that the buyers may identify not having a pre-inspection as a risk and will offer and negotiate accordingly.
Thinking about selling in the Seattle Area?
Kelly Azzarello Real Estate | Compass
kelly@kellyazzarello.com | (425) 830-6457
Instagram: instagram.com/kellyazzarello
YouTube: youtube.com/kellyazzarellorealestate
Disclaimer
This post is general information about real estate topics. It is not legal, tax or financial advice, and it does not replace a professional inspection. Rules and practices differ by situation and change over time. Check current requirements and talk with a licensed professional, such as an inspector, contractor, attorney or CPA, about your own property.
The Number One Thing We Recommend Before You List: Inspect the Crawlspace
The crawlspace is where moisture, pests and failing insulation build up unseen, and a buyer's inspector will check. Here is what to look for and what to do first.
Why the crawlspace is first
The crawlspace is the part of the house nobody looks at, and it is where moisture, pests and failing insulation tend to build up quietly. Buyers' inspectors go in. What they find there can reshape a negotiation, and the fixes can be larger than a seller expects. Finding it first gives you time and options.
What to look for
Standing water, damp soil or a musty smell.
Missing, torn or displaced vapor barrier over the soil.
Wet, sagging or missing insulation.
Blocked or damaged vents.
Signs of pests, such as droppings or chewed material.
Plumbing leaks or stains on the subfloor and framing.
Rot or damage to wood framing.
What to do
Have the space looked at, by you if you are comfortable and it is safe, or by a qualified professional.
Find the cause of any moisture first, such as a leak or drainage problem, and fix it.
Then repair the damage: insulation, vapor barrier and vents, with licensed professionals for pest and plumbing work.
If it cannot be fully fixed before listing, get a written estimate so it can be disclosed and priced.
Keep receipts and reports.
What not to do
Do not add new insulation over a leak or damp area.
Do not seal vents or cover problems.
Do not skip it because nobody has looked in years.
For more detail, read [link: The crawl space and attic nobody has checked in years].
From Our Own Experience
In the Pacific Northwest, crawlspaces are often beneath the entire home. This gives you more to inspect, and more to repair. We also have more damp weather, which can translate into higher moisture levels in these locations. While these are easily managed, they are often ignored for years at a time: “What I can’t see can’t hurt me, right?”
In nearly every case that we list a home we highly recommend having the crawlspace (and attic) inspected. Having this done earlier rather than later will help you identify a vendor, get multiple quotes, and schedule the work at a time that is convenient for you.
In some cases, such as a sudden leak, insurance may help offset the cost of the work. Maintenance and long-term wear are usually not covered, so ask your insurer.
Very close to home, we listed a family member’s home a few years ago. Even though she had the entire crawlspace cleaned and reinsulated a few years earlier when her kitchen was remodeled, upon having a pre-inspection before her home went on the market we discovered pests had again invaded her crawlspace.
Fortunately:
- She was aware from previous experience what to expect.
- She relied on us to help her find a vendor that could do the work quickly and without inflated “emergency” pricing.
- We negotiated a transferable warranty with the vendor, so it could be passed on to the buyer.
If this had been a buyer’s inspection, she may have been unable to react quickly and get the work done, costing her both time and money.
Thinking about selling in The Seattle Area?
Kelly Azzarello Real Estate | Compass
kelly@kellyazzarello.com | (425) 830-6457
Instagram: instagram.com/kellyazzarello
YouTube: youtube.com/kellyazzarellorealestate
Disclaimer
This post is general information about real estate topics. It is not legal, tax or financial advice, and it does not replace a professional inspection. Rules and practices differ by situation and change over time. Check current requirements and talk with a licensed professional, such as an inspector, contractor, attorney or CPA, about your own property.
What Do I Have to Disclose When I Sell My Home, and What If the Home Is in an Estate?
Selling a home in the Seattle area means completing a Seller Disclosure Statement. Here is what it covers, what counts as "known," and how an estate sale can be different.
Part 1: Selling your own home
The Seller Disclosure Statement (NWMLS Form 17)
In Washington, a seller of improved residential property usually gives the buyer a Seller Disclosure Statement. It asks about the home's title, water, sewer and septic, structure, systems and fixtures, environmental matters, the homeowners association and other topics.
Timing. Unless you and the buyer agree otherwise, the statement is due within five business days after mutual acceptance.
The buyer's right to rescind. The buyer has three business days after receiving the statement to rescind, in a separately signed written statement, unless you both agree otherwise in writing.
What you must answer. Answer every question. The seller must complete Form 17, not the agent. Once it is done, your agent uploads it with the other forms, and it is available to buyers' agents and their clients. Write "NA" where a question clearly does not apply, and explain every "yes" answer on an attached sheet. The statement is signed and dated.
It is based on what you know. The disclosure reflects your actual knowledge when you complete it. It is not a warranty, and it is not part of the contract.
What counts as "known"
Form 17 asks about material issues that are current, and about those that were recent and have since been corrected. Examples include leaks, past water in the crawl space, pest damage, a failed inspection item, unpermitted work and insurance claims, such as fire, water damage or an accident that damaged the home. These are examples, not a complete list. Where the form asks, answer for what you know, whether or not you fixed it. Receipts, reports and warranties show buyers what was done and when.
Other disclosures to ask about
Lead-based paint for homes built before 1978. Federal rules require sellers of most pre-1978 housing to disclose known lead-based paint and lead-based paint hazards, give the buyer any available records and reports, provide the EPA pamphlet "Protect Your Family From Lead in Your Home," and include a lead warning statement in the contract. The buyer must also be allowed a 10-day period to inspect for lead, which the buyer can waive or change in writing. Sellers are not required to test.
HOA or condominium documents and fees, if the home is in an association. Form 17 asks about the association, its dues and any pending special assessments. When a condominium is sold, the buyer also receives a resale certificate from the association (RCW 64.34.425 for older condominiums, RCW 64.90.640 for communities under the newer common interest ownership act), and the buyer has a short window to cancel after receiving it. Order it early, because the association can take time.
Changes before closing. If you learn something that makes an earlier answer inaccurate, tell your agent right away. Washington law (RCW 64.06.040) requires the seller to amend the statement and deliver it to the buyer if the seller learns of new information, or an adverse change occurs, that makes an earlier answer inaccurate. No amendment is needed if the seller fixes the problem so the answer is accurate again at least three business days before closing. Otherwise the buyer can accept the amendment or rescind within three business days. The seller's duty ends at closing.
Family burial ground question (new January 1, 2027). A new Washington law adds a question to Form 17 asking whether the property includes a family burial ground, mausoleum or columbarium. Many homes that are listed now, or being prepared to list, may still be on the market or go under contract after January 1, 2027, so sellers should plan for this question and ask their agent which version of the form applies.
What not to do
Do not leave questions blank or answer "no" when you are unsure. Say what you know, or say you do not know.
Do not cover or paint over a problem and then say nothing about it.
Do not rely on "as is" language to avoid disclosing what you know. Ask your attorney how it applies to you.
Do not guess. If you are not sure, a pre-listing inspection can give you facts to work from.
Part 2: Selling a home in an estate
When the owner has died, the person selling is usually a personal representative (executor) or a trustee. That person often has never lived in the home and may not know its history.
Who signs matters. The person with legal authority signs, and some estates require notices or court steps before a sale. Talk with the estate attorney first.
Disclosure may be different. Washington's disclosure law (RCW 64.06.010) exempts a transfer made by the personal representative of a decedent's estate. A trustee of a living trust or a guardian is not named in that list, so ask your attorney whether Form 17 is required, and how to complete it if it is. Do not assume the answer.
Even if a form is not required, buyers will still ask. If you know about problems, say so. A pre-listing inspection (see Topic 22 [link]) gives an estate seller facts to share instead of guesses.
Share what you know, and say what you do not know. Family members who lived in or maintained the home may know its history. Ask them, and keep notes and records.
Contents and condition. See our post on preparing an estate home for sale (Topic 26 [link]).
From Our Own Experience
It is important to understand disclosure when you are selling a home. The law is very specific and you could open yourself up to legal action if you do not disclose required information correctly and completely.
While we can help you through the forms, we are not allowed to fill them out for you, and if you have questions we suggest you contact your attorney to clarify.
It is important to understand disclosure when you are selling a home. The law is very specific and you could open yourself up to legal action if you do not disclose required information correctly and completely.
While we can help you through the forms, we are not allowed to fill them out for you, and if you have questions we suggest you contact your attorney to clarify.
Thinking about selling in The Seattle Area?
Kelly Azzarello Real Estate | Compass
kelly@kellyazzarello.com | (425) 830-6457
Instagram: instagram.com/kellyazzarello
YouTube: youtube.com/kellyazzarellorealestate
Sources
Washington Legislature, RCW 64.06 (seller disclosure statements), including 64.06.010 (exempt transfers), 64.06.020 (Form 17 content) and 64.06.040 (amending the statement): app.leg.wa.gov/RCW/default.aspx?cite=64.06
Northwest Multiple Listing Service (NWMLS), Form 17, Seller Disclosure Statement, Improved Property (NWMLS forms library, members only): nwmls.com
U.S. Department of Housing and Urban Development, The Lead Disclosure Rule: hud.gov/program_offices/healthy_homes/enforcement/disclosure
EPA and HUD, Requirements for Disclosure of Known Lead-Based Paint and/or Lead-Based Paint Hazards in Housing, 40 CFR Part 745 (Federal Register, March 6, 1996): govinfo.gov/content/pkg/FR-1996-03-06/html/96-5243.htm
Washington Legislature, RCW 64.90.640 (resale certificate) and RCW 64.34.425 (condominium resale certificate): app.leg.wa.gov/RCW
Disclaimer
This post is general information about real estate topics. It is not legal, tax or financial advice, and it does not replace a professional inspection. Rules and practices differ by situation and change over time. Check current requirements and talk with a licensed professional, such as an inspector, contractor, attorney or CPA, about your own property.
Legal: Disclosure duties depend on your facts, the type of sale and who is selling. This is not legal advice. Please discuss your situation with your own attorney before you list.