What Should I Do If the Appraisal Comes in Low?
- By Jim Blackburn
- on
- 100 first time home buyer FAQs
1. Ask the Seller to Lower the Price
If the home appraises for less than what you offered, your lender won’t finance the full purchase amount. One of the first steps is to negotiate with the seller to lower the price to match the appraised value. Sellers often agree—especially if they want to keep the deal alive and avoid putting the home back on the market.
Before negotiating, understand what comparable homes are actually worth. Get a Free Home Evaluation to see recent sales data and determine if your offer or the appraisal is closer to true market value.
2. Challenge the Appraisal If You Spot an Error
Think the appraiser missed something? You’re allowed to dispute the appraisal. Your lender can request a reconsideration or even order a second opinion. This is where your real estate agent becomes your MVP—they can provide comparable sales data that supports your original offer and helps make your case.
Need help finding a skilled agent who can challenge appraisals effectively? Get An Introduction to experienced real estate professionals who know how to gather comps and build a strong case for appraisal reconsideration.
3. Bring Extra Cash to Cover the Gap
If the seller won’t budge and the appraisal stands, you can still move forward by increasing your down payment to cover the difference between the appraised value and the purchase price. This isn’t always ideal, but it’s an option if you’re in love with the home and financially prepared.
If you need to cover an appraisal gap but have limited cash, explore low down payment options that preserve your reserves. Calculate your FHA Purchase Loan Payment now to see if 3.5% down leaves you with enough funds to bridge the appraisal difference.
Additional placement (optional) – After the FHA sentence:
Veterans have even more flexibility when dealing with low appraisals. Calculate your VA Purchase Loan Payment now to see how zero down payment financing preserves maximum cash to cover appraisal gaps if needed.
Facing a Low Appraisal? Let’s Build a Winning Strategy
At Stairway Mortgage, we turn bumps in the road into smart decisions. You’ve got this—and we’ve got your back.
📘 Download our homebuyer guides about handling appraisal issues.
🏠 Get a Free Home Evaluation to verify market value.
📊 Check Current Rates and understand your options.
🤝 Get An Introduction to experienced real estate professionals.
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