📊 The Reality: 8-12% of Appraisals Come in Low
According to 2025 data, 8-12% of home appraisals come in BELOW the contract price. The average appraisal gap is $8,000-$15,000. In hot markets, gaps can exceed $50,000. This isn't a disaster—it's an opportunity for smart buyers who know their options.
Key Stat: 56% of buyers with low appraisals successfully renegotiate. 23% cover the gap. 15% appeal. Only 6% walk away.
Appraisals Coming Low
8-12%
Average Gap
$8K-$15K
Renegotiate Success
56%
7 Proven Solutions When Appraisal Comes in Low
Renegotiate Purchase Price
Ask seller to lower price to match appraisal. 56% success rate. Seller often agrees to avoid losing deal. You save money, seller avoids relisting costs ($5K-$10K).
Get preapproved to strengthen your negotiating position →Split the Difference
Buyer covers half gap, seller lowers price by half. Fair compromise. On $20K gap: you pay $10K more, seller drops $10K. Works in 23% of cases.
Get preapproved to strengthen your negotiating position →Cover Full Appraisal Gap Yourself
Pay difference in cash at closing. Requires extra funds but keeps deal intact. On $20K gap: you pay $20K more down payment. Strengthens your offer.
Get preapproved to strengthen your negotiating position →Appeal the Appraisal
Challenge if you believe it's wrong. Provide comparable sales showing higher value. 20-30% of appeals succeed. Costs $300-500 but can save $20K+. Hire appraiser to review.
Get preapproved to strengthen your negotiating position →Request Second Appraisal
Some lenders allow second appraisal if first seems low. Average the two. Costs $400-600 but can help if first was undervalued. Requires lender approval.
Get preapproved to strengthen your negotiating position →Increase Down Payment
Put more cash down to reduce LTV ratio. Lender may approve despite low appraisal. Requires extra funds but keeps deal alive. Improves approval odds significantly.
Get preapproved to strengthen your negotiating position →Walk Away (If Appraisal Contingency)
If contract includes appraisal contingency, cancel without penalty. Protects you from overpaying. CHECK YOUR CONTRACT! Most standard contracts include this protection.
Get preapproved to strengthen your negotiating position →Real-World Example: The $50K Appraisal Gap
Your 7 Options:
- ✅ Renegotiate: Seller drops to $305K (you save $20K)
- ✅ Split: You pay $10K more, seller drops $10K
- ✅ Cover gap: You pay full $325K (need extra $20K cash)
- ✅ Appeal: Challenge appraisal (20-30% success)
- ✅ Second appraisal: Average two appraisals
- ✅ Increase down: Put more cash down
- ✅ Walk away: Use appraisal contingency (no penalty)
Don't Let Appraisal Gap Derail Your Deal
Get preapproved and strengthen your negotiating position. Know your options before appraisal comes in.
Get Preapproved Now →Key Takeaways
8-12% of appraisals come in low
Average gap: $8,000-$15,000
56% renegotiate successfully
Appraisal contingency protects you
Appeals succeed 20-30% of time
Covering gap requires extra cash
Split difference is fair compromise
Second appraisal costs $400-600
Lender won't lend above appraised value
LTV ratio matters for approval
Document everything in writing
Act quickly - timelines matter
Protect Your Deal Today
Get preapproved and know your options before appraisal. Strengthen your negotiating position.
Get Your Preapproval Letter →About Rachel Kim
Rachel Kim is a Real Estate & Appraisal Expert with 13+ years helping buyers navigate appraisal gaps, negotiate with sellers, and close deals. She's helped 1,000+ buyers overcome low appraisals and save $50K-$200K+ through smart negotiation strategies.
📍 Real Estate Expert | Appraisal Specialist | Deal Negotiator | NMLS Certified