What happens if the appraisal comes in low?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
If the appraisal is below the contract price, you have options: renegotiate the price with the seller, cover the gap in cash, contest the appraisal with better comps, or — if your contract allows — walk away.
The lender lends against the lower of price or appraised value, so the gap must be resolved. We help you weigh the choices and, when warranted, challenge the appraisal.
Your options on a low value
If the appraisal comes in below the purchase price, you have choices. You can ask the seller to lower the price, cover the gap with extra cash, split the difference, or dispute the appraisal with better comparable sales.
The gap matters because the lender only lends against the appraised value, not the contract price. A $10,000 shortfall means finding $10,000 or renegotiating.
How we help
We review the appraisal for errors and gather stronger comps if the value looks off. We also help you and your agent negotiate with the seller.
A low appraisal is not the end of a deal. Reach out and we will map the smartest path forward so you do not overpay or lose the home.