By Sold Realty Group

You’ve accepted a great offer. You’re nearly at the finish line. Then—bam—you hit a roadblock: the appraisal comes in low.

It’s one of the most common (and frustrating) issues in real estate transactions: your home is under contract for one price, but the appraiser values it for less. When that happens, lenders won’t approve a loan for the full purchase amount, and the deal could be in jeopardy.

But don’t panic—you have options. At Sold Realty Group, we’ve helped countless sellers navigate appraisal gaps and keep deals together. Here’s what to know and what to do if your home doesn’t appraise for the sale price.

💡 First, Why Does This Happen?

Appraisals are conducted by third-party professionals to protect lenders from over-lending on a property. Even if a buyer is willing to pay more, a lender bases the loan on the appraised value, not the purchase price.

Common reasons appraisals fall short:

• Lack of comparable sales (comps) nearby

• Rapidly changing market conditions

• Over-upgrades or features that don’t add dollar-for-dollar value

• Appraiser unfamiliar with the area

• Competitive bidding that drove up the offer price

🧠 Step 1: Stay Calm and Review the Appraisal

Before making any moves, review the appraisal report with your real estate agent. Look for:

• Errors in square footage, bedroom/bath count, or features

• Inappropriate or outdated comparables

• Omissions of recent upgrades or renovations

Sometimes the issue can be as simple as a missed room addition or a bad comp. At Sold Realty Group, we scrutinize the report line-by-line and consult with the buyer’s agent to figure out next steps.

📈 Step 2: Request a Reconsideration of Value

If the appraisal contains inaccuracies or weak comps, your agent can help you submit a Reconsideration of Value to the appraiser’s lender.

This includes:

• Corrected home data (square footage, amenities)

• Better comparable sales

• Documentation of recent upgrades or improvements

While not always successful, this strategy can sometimes lead to an appraisal adjustment—especially if the original report was rushed or poorly supported.

💬 Step 3: Negotiate With the Buyer

If the appraisal value stands, don’t give up. You and the buyer still have several ways to bridge the gap:

Option A: The Buyer Covers the Difference

Many motivated buyers will cover the shortfall in cash if they have the means and still feel the home is worth the price.

Option B: Meet Somewhere in the Middle

You and the buyer may agree to split the difference—you reduce the price slightly, and they bring some cash to the table.

Option C: Reduce the Sale Price

Depending on your goals and the market, it may make sense to adjust the price to keep the deal alive, especially if relisting would cost more in time and carrying costs.

💡 At Sold Realty Group, we guide our sellers through these discussions, ensuring their interests are protected while keeping deals on track.

🛑 Step 4: Evaluate the Worst-Case Scenarios

If negotiations stall, here are your fallback options:

Relist the Home

You can relist the home and hope for another buyer—preferably one offering cash or waiving the appraisal contingency.

Ask the Buyer to Switch Lenders

Sometimes a different lender will send a different appraiser, and that second appraisal might come in higher (especially in fluctuating markets).

Cancel the Contract

If your agreement included an appraisal contingency, the buyer may have the right to walk away. This isn’t ideal—but it frees you up to find a more compatible offer.

✅ Pro Tips to Avoid Low Appraisals in the First Place

• Price realistically from the start: We use up-to-date comps and pricing strategies tailored to your neighborhood.

• Prep your home: Provide a list of improvements and updates for the appraiser to review.

• Choose strong buyers: Pre-approved buyers with solid down payments or cash offers reduce the risk of appraisal issues.

• Lean on a strong listing agent: We’re proactive about meeting the appraiser with comps, upgrade lists, and any supporting documents they may need.

🏁 Final Thoughts

A low appraisal doesn’t have to kill your deal—but it does take knowledge, negotiation, and strategy to move forward. That’s where we come in.

At Sold Realty Group, we’ve helped sellers navigate all kinds of appraisal surprises—and still close successfully. Whether you’re already in a contract or planning to list soon, we’ll prepare you with smart pricing, buyer screening, and expert guidance every step of the way.

📣 Selling a Home? Let’s Make Sure It Appraises.

Don’t leave your sale to chance.
📞 Contact Sold Realty Group today for expert listing services that include appraisal support, negotiation strategy, and local market insight.

✅ Trusted agents. Proven results. Stronger closings.