What Happens if your Home Appraisal is Low?

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You found a home, negotiated an offer, and you're moving toward closing. Then the appraisal comes in below your agreed price. Does that mean you've lost the house?

Not necessarily! Here's what buyers should know.

💰 What Is an Appraisal Gap?

Imagine you're buying a home for $500,000, but the appraisal values it at $485,000. That's a $15,000 gap. Because lenders generally calculate financing using the lower of the purchase price or appraised value, the difference may affect your loan and cash needed to close.

🤝 Can You Renegotiate?

Yes. You can ask the seller to lower the price or meet somewhere in the middle. The seller doesn't have to agree, but a low appraisal can open a new conversation.

🔎 Can the Appraisal Be Reviewed?

If important comparable sales or property details were missed, your lender can explain the process for requesting a reconsideration of value.

🇺🇸 What About VA Buyers?

VA buyers have appraisal-related protections in qualifying contracts. The exact rights, notices, and deadlines depend on the agreement.

🚪 Can You Cancel?

Possibly. Your financing and appraisal terms matter. Never assume your earnest money is protected without reviewing the contract and deadlines.

The bottom line: A low appraisal is a challenge, not automatically the end of your purchase. The right strategy starts before you write the offer.

Bernell Zorn | Legacy Homes PNW

206.550.9337

Still Serving Those Who Serve.