What Happens If An Appraisal Comes In Low?

Three options for dealing with a low appraisal.


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When an appraisal comes in low, consumers typically have an appraisal contingency built into their offers, but buyers and sellers have three options to proceed:


  1. Meet in the middle. The most common approach is to negotiate to see if the buyer and seller can meet somewhere between the contract price and the appraised value.


  1. Bring the difference in cash. The buyer’s lender will only loan the appraised value, so if the appraisal comes in, say, $10,000 lower, the buyer can decide to fill the gap themselves. As a seller, you would be more likely to do this if there were multiple offers on your property.


  1. Cancel the deal. You as the buyer always have the right to cancel the contract if you’re not willing to match the difference or if the seller isn’t willing to meet you in the middle.



As real estate agents, we do work to make sure that the appraisal comes in at the contract value. One of the biggest benefits of working with a solid listing agent is that we can communicate with the appraiser to convey why the seller received the offer they did and justify the price with recent sales data. We’ll also appeal to the number of showings and offers the house received, as well as the short amount of time it was on the market. Information like that can also help the appraiser understand why the buyer came in with that offer.


"We’ll be able to communicate with the appraiser to convey why the seller received the offer they did and justify the price with recent sales data."

If you have any questions about this or anything else to do with real estate, give us a call or send us an email. We’re always here to answer your questions and make you feel comfortable with any decision you make.


1 comment :

  1. It is a good idea to hire a competent real estate agent when purchasing a home. Because skilled real estate brokers make the house-buying process simpler. In addition, real estate agents will handle the paperwork.

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