First, What Does a Low Appraisal Actually Mean?
When you’re buying a home using a mortgage, your lender orders an independent appraisal to determine the property’s fair market value. This protects you and the lender from overpaying.
If the appraisal comes in lower than your offer price, it creates a “gap”—and lenders typically won’t finance more than the appraised value. That means you may need to bring more money to the table or renegotiate.
Option 1: Renegotiate the Purchase Price
This is often the simplest and most successful solution. If the appraisal came in significantly lower than the agreed purchase price, your agent can go back to the seller and request a price reduction.
Sellers may be open to renegotiating, especially if:
The home has been on the market for a while
They’re motivated to sell
The appraisal is backed by strong comparable sales data
Even a partial reduction can help bridge the gap.
Option 2: Challenge the Appraisal
Appraisers are human, and mistakes happen. If you believe the appraisal missed key features, used poor comparables, or didn’t reflect recent market changes, you can file a reconsideration of value (ROV).
To do this, your lender (that’s where I come in!) will help you gather:
Better comps (homes recently sold that are more similar to the one you’re buying)
Details the appraiser may have overlooked (upgrades, condition, location perks)
While there’s no guarantee the appraised value will change, it’s worth trying—especially in fast-moving markets.
Option 3: Cover the Difference
If the seller won’t budge and the appraisal stands, you still have the option to bring additional cash to cover the gap between the appraised value and the purchase price.
This doesn’t always mean shelling out tens of thousands—sometimes, the gap is relatively small and manageable, especially if the home is worth it to you long-term.
Option 4: Adjust Your Loan Terms
Depending on your situation, we can explore ways to restructure your loan, such as:
Switching loan types
Adjusting your down payment
Rolling in closing costs differently to free up funds
It’s worth sitting down together to go over what’s possible. A creative financing solution might make up for the appraisal shortfall.
Option 5: Walk Away (If It Makes Sense)
If all else fails—and the numbers just don’t work—you might need to re-evaluate the deal. It’s never easy to walk away, but sometimes, it’s the smartest financial move.
Your pre-approval still stands, and we can keep your home search going with lessons learned and a sharper eye moving forward.
Final Thoughts: You’ve Got Options—and Support
A low appraisal can feel like a deal-breaker, but it doesn’t have to be. With the right strategy (and a solid loan officer in your corner), you can navigate this setback and move closer to the finish line.
If this just happened to you—or you want to be prepared—reach out. I’m here to walk you through every option and help you make the best decision for your future.
Want help getting pre-approved or learning more about the appraisal process? Let’s connect.
