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What Happens If My Home Doesn't Appraise?

A low appraisal does not have to end a transaction, but it does require decisions from both sides. Here is how to think through your options when the appraised value comes in below the contract price.

Video coming soon

The key takeaways are below in the meantime.

Bri Bond-Erwin

Written by Bri Bond-Erwin

Key Takeaways

  • When a home appraises below the purchase price, the lender will typically only fund up to the appraised value
  • Buyers and sellers can renegotiate the price to match the appraised value so the transaction can continue
  • The buyer may choose to cover the gap between the appraised value and the purchase price in cash
  • A buyer can also request a reconsideration of value from the appraiser if they believe the analysis was incomplete or inaccurate
  • If none of these options resolve the gap, the buyer may be able to exit the contract under an appraisal contingency
  • Working with an experienced agent helps you navigate a low appraisal without losing a home you want or accepting terms that don't make financial sense

Transcript will be available when the video is recorded.

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