What Happens if the Appraisal Comes in Low?

A low appraisal means the lender's appraiser valued the home below your agreed purchase price. This can affect your loan, but you have several options.

Option 1: Renegotiate the Price

You can ask the seller to lower the price to match the appraised value. In a balanced market, sellers often agree rather than restart the process.

Option 2: Cover the Gap

You can pay the difference between the appraised value and the purchase price in cash. Some buyers plan for this with an appraisal gap strategy in competitive markets.

Option 3: Meet in the Middle

Buyer and seller sometimes split the difference to keep the deal together.

Option 4: Walk Away

If your contract includes an appraisal contingency, you may be able to cancel and keep your earnest money.

Let's Plan Ahead

Reach out and I'll help you build an offer strategy that accounts for appraisal risk.