Short answerYou have four main options: ask the lender for a reconsideration of value with better comparable sales, lower the price to the appraisal, split the gap with the buyer, or keep the price if the buyer can cover the difference in cash. What you can do depends on your contract's appraisal terms and the buyer's loan.
Your options
- Reconsideration of value. Your agent sends the lender stronger comparable sales or corrects factual errors. It works best when the appraiser missed a recent sale.
- Lower the price to the appraised value.
- Split the gap with the buyer.
- Keep the price if the buyer can and will pay the difference in cash.
Read your contract's appraisal terms first. The general explainer: what happens when the appraisal comes in low. The buyer's side: buyer options.
Frequently asked questions
Does a low appraisal follow the house to the next buyer?
On FHA loans, an appraisal can stay attached to the property for a period. Ask the lender how it applies.
Can I order my own appraisal?
Yes, but the buyer's lender uses its own. A pre listing appraisal can help with pricing.
Keep reading
Want to know what a buyer's inspector may find before they do?
Book a free pre listing condition walk. I walk the house with you, point out what inspectors and FHA, VA, and USDA appraisers tend to flag, and give you planning ranges so you can decide what to fix, credit, price in, or disclose.
Book a condition walkOr call or text (812) 525-5489, or email john@yourpropertynegotiator.com.
The condition walk is a REALTOR® and contractor evaluation, not a home inspection, and it does not replace one. If you have already signed a listing agreement with another agent, please take these questions to your agent.
Written by John Long, REALTOR®, 1 Percent Lists Indiana Real Estate. Working contractor who has priced hundreds of home inspection repair requests. Former labor relations negotiator for a major manufacturer and U.S. Coast Guard veteran.
John Long, REALTOR® · 1 Percent Lists Indiana Real Estate · (812) 525-5489 · yourpropertynegotiator.com
This page is general information, not a substitute for a professional home inspection, and not legal, tax, insurance, or lending advice. Ask a real estate attorney about contracts and disclosure, a CPA about taxes, your lender about loan rules, and a licensed inspector or tradesperson about your house. Nothing here guarantees a sale price, net proceeds, repair cost, payment, timeline, appraisal, inspection result, or loan approval. Cost figures are planning estimates, not bids. I own Wardmark Property Operations LLC, a contracting company. You are always free to use any contractor you choose.