Renegotiate with the seller
The buyer may ask the seller to reduce the price to the appraised value or another agreed amount. Whether the seller agrees depends on the contract, market, and strength of the supporting data.
Appraisals and Property
Low appraisal? You still have options.
A low appraisal does not automatically kill the deal. It means the contract price and appraised value do not match, so the buyer, seller, lender, and agents need to decide what happens next.
Challenge the appraisal
If there are factual errors, missing comparable sales, or relevant information the appraiser did not consider, the lender may allow a reconsideration of value. A challenge needs specific evidence, not just disappointment.
Bring cash or meet in the middle
The buyer may pay some or all of the difference, or the buyer and seller may split it. Before bringing extra cash, confirm how the lower value affects the loan-to-value ratio and required funds.
Walk away if the contract allows
An appraisal contingency or other contract protection may allow the buyer to cancel. Contract rights should be reviewed with the Realtor or an attorney, not guessed at after the deadline.
As is versus subject to
An as-is appraisal reflects the property in its current condition. A subject-to appraisal is based on required repairs or improvements being completed before the loan can close. Low value and required repairs are separate issues, although both can affect financing.
Written by Marta Lillard
25+ years of mortgage experience, explained in plain English.
Mortgage Broker · First Coast Mortgage Funding · NMLS #879436 · Licensed in Florida and Georgia
Questions about your options?