What to Do If Your Appraisal Comes in Low — Buyer & Seller Strategies That Actually Work
Buying or selling a home can be stressful, and a low appraisal adds another layer of complexity. When the appraised value comes in below the agreed-upon price, it can affect your mortgage approval, negotiations, and overall transaction. But don’t panic — there are proven strategies for both buyers and sellers to navigate a low appraisal.
Why Appraisals Matter
Lenders use appraisals to ensure the home is worth the loan amount. If the appraisal is low:
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Lenders may reduce the mortgage amount.
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Buyers may need to bring extra cash to close.
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Sellers may need to adjust the price to keep the deal alive.
Understanding your options quickly can save the deal.
Buyer Strategies When the Appraisal Is Low
1. Negotiate with the Seller
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Ask the seller to lower the price to match the appraisal.
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Sometimes sellers are willing to split the difference, especially in a balanced market.
2. Challenge the Appraisal
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Provide additional comps or evidence of home improvements to your lender.
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Request a reconsideration of value — appraisers can review new data.
3. Increase Your Down Payment
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If possible, cover the difference between the appraised value and the contract price out of pocket.
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This keeps the deal on track without renegotiating the price.
4. Shop for a New Appraisal
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In some cases, you can order a second appraisal through your lender.
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A new appraiser might value the property differently.
Seller Strategies When the Appraisal Is Low
1. Provide Additional Information
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Supply the appraiser with recent comparable sales, upgrades, and home improvements.
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This can help increase the appraised value on reconsideration.
2. Negotiate with the Buyer
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Consider lowering the price or offering credits to maintain the sale.
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A flexible approach keeps the transaction moving and avoids losing the buyer.
3. Offer Incentives
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Cover closing costs or include appliances/furniture to make the deal more appealing without changing the sale price.
4. Wait for the Market to Improve
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If time allows and the buyer agrees, you might pause the transaction and try again later when home values rise.
Final Thoughts
A low appraisal doesn’t have to derail your home sale or purchase. Buyers can negotiate, challenge, or adjust financing, while sellers can provide documentation, adjust pricing, or offer incentives. Acting quickly and strategically keeps the deal alive and protects everyone’s investment.
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Tina Jingru Sui 隋静儒
Associate Broker | Team Leader of TJS Team, Keller Williams
Serving Metro Atlanta — Johns Creek, Alpharetta, Duluth, Suwanee, Buford, and beyond
404-375-2120
WeChat: tinasuirealty
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