Low Appraisal 2026: What To Do When Your Home Appraisal Comes In Low
Your appraisal came in $20K, $30K, or even $50K below your offer price. Don't panic. Here are your 6 options, how to dispute, and when to walk away.
⚠️ What a Low Appraisal Means
Your lender will only loan based on the appraised value, not your offer price. If you offered $400K but it appraised at $380K, you need to cover the $20K gap somehow.
You have options! Renegotiate, dispute, split the difference, or use your appraisal contingency to walk away. About 75% of low appraisal situations get resolved.
🎯 Your 6 Options When Appraisal Comes In Low
| Option | What It Means | Best For | Risk |
|---|---|---|---|
| Pay the Difference | Bring extra cash to cover the gap | Buyers with cash reserves who love the home | Overpaying for the home |
| Renegotiate Price | Ask seller to lower price to appraised value | Buyers in balanced/slow markets | Seller may refuse and you lose the home |
| Split the Difference | Buyer and seller each cover half the gap | Both parties want the deal to close | Still paying above appraised value |
| Dispute the Appraisal | Request Reconsideration of Value (ROV) | When appraiser made errors or missed comps | Takes time, only 20-30% success rate |
| Get a Second Appraisal | Order new appraisal (if lender allows) | When first appraisal seems clearly wrong | Additional cost ($400-$600), may come in same |
| Walk Away | Use appraisal contingency to exit contract | When gap is too large or home overpriced | Lose the home, start over |
💰 Real Examples: What Different Gaps Look Like
| Offer Price | Appraised Value | Gap | Split 50/50 | If Financed* |
|---|---|---|---|---|
| $400,000 | $385,000 | $15,000 | $7,500 each | +$100/month if financed |
| $500,000 | $470,000 | $30,000 | $15,000 each | +$200/month if financed |
| $600,000 | $550,000 | $50,000 | $25,000 each | +$333/month if financed |
| $750,000 | $700,000 | $50,000 | $25,000 each | +$333/month if financed |
*If you could somehow finance the gap (rare), this shows the monthly payment impact at 7% interest.
💬 Real Stories from Reddit
"Appraisal came in $30K low on a $400K offer. Seller initially refused to budge. We showed them the appraisal report and said we'd walk. They came down $25K, we paid $5K extra. Closed at $380K."
Key: Be willing to walk away. Sellers often negotiate when faced with losing the deal.
"Appraiser used comps from 6 months ago in a rapidly appreciating market. Our agent found 3 recent sales within 0.5 miles that supported our price. Filed ROV, appraiser adjusted value up $18K. Deal closed."
Key: Work with your agent to find better comps. Appraisers can miss recent sales.
"Appraisal came in $50K low. Seller wouldn't budge at all. We didn't have $50K cash to cover the gap. Used our appraisal contingency and walked. Found a better house 2 months later that appraised fine."
Key: Sometimes walking away is the right choice. Don't overpay just because you're emotionally attached.
📋 How to Dispute a Low Appraisal (ROV)
Reconsideration of Value (ROV) Checklist
✅ ROV Success Tips
- • Submit within 48-72 hours
- • Provide 3-5 strong comparable sales
- • Include photos of upgrades
- • Be factual, not emotional
- • Have your agent help compile evidence
❌ What Doesn't Work
- • "We really love this house"
- • Zillow/Redfin estimates
- • Comps from different neighborhoods
- • Threatening the appraiser
- • Comps older than 6 months
🏠 Need to Find a New Home?
If you walked away from a low appraisal, get pre-approved again and find a home that's priced right. Compare lenders to get the best rate.
Get Pre-Approved in Minutes →🔀 Decision Flowchart: What Should You Do?
Question 1: How big is the gap?
Under $10K
Often worth paying or splitting
$10K-$30K
Negotiate hard, consider disputing
Over $30K
Seriously consider walking away
Question 2: Do you have the cash?
If you have cash reserves AND still want the home, paying the gap is an option. But remember: you're starting with negative equity.
Question 3: Is the market hot or cooling?
Hot Market
Seller may have backup offers. Less negotiating power.
Cooling Market
Seller needs your deal. More negotiating power.
Question 4: Did you waive the appraisal contingency?
If yes: You're obligated to proceed or forfeit earnest money. Try to renegotiate anyway - some sellers will work with you.
If no: You can walk away with your earnest money. Use this leverage in negotiations.
❓ Frequently Asked Questions
Ready to Find Your Next Home?
Whether you're moving forward or starting fresh, get pre-approved and shop with confidence.
Meet Emily
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Emily Chen specializes in complex financing solutions for construction projects and commercial real estate investments. With 8 years of experience in construction-to-permanent loans and DSCR financing, she has funded over $200 million in construction and investment property projects. Her expertise in navigating construction loan complexities and commercial underwriting makes her invaluable for real estate investors and builders.
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Funded $200M+ in construction projects