You’ve accepted an offer on your home—only to find out the buyer’s appraisal came in lower than expected. It’s a frustrating moment, but it doesn’t have to kill the deal. Low appraisals are more common in changing markets, and how you respond can make all the difference. At Onsite Real Estate Group, we help sellers across East Pierce County navigate situations like this with clarity, strategy, and calm. Here’s what to do if your appraisal falls short of the agreed sale price.
A low appraisal simply means the lender’s appraiser determined the home’s value is less than the price you and the buyer agreed on. Since most buyers rely on financing, their loan amount is based on the appraised value—not the offer price. That gap between the contract price and appraised value is where problems can arise, but it doesn’t always mean the deal is dead.
Before taking action, carefully review the appraisal report. Look for errors in square footage, incorrect details, or poorly chosen comparable sales. Appraisers sometimes use outdated or mismatched comps, especially in fast-moving markets. If anything seems off, your agent can help you prepare a rebuttal and request a reconsideration of value from the lender.
In many cases, the buyer and seller renegotiate to keep the deal alive. You may agree to lower the sale price, the buyer may agree to bring more cash to closing, or you could meet somewhere in the middle. While no one loves leaving money on the table, adjusting the price slightly may still make sense if it keeps the transaction moving forward.
If your buyer is highly motivated—or in a multiple-offer situation—they may be willing to waive the appraisal contingency and cover the difference in cash. This is more common with well-qualified buyers or homes with strong emotional appeal. Your agent can help assess whether this is a realistic option based on the buyer’s financing and intent.
If you and the buyer can’t reach a compromise, the deal may fall apart. While disappointing, it doesn’t mean you can’t sell—especially if you price strategically the second time around. You might also attract a cash buyer who doesn’t require an appraisal or another financed buyer with different lender requirements.
A low appraisal isn’t the end of the road. At Onsite Real Estate Group, we’ve guided many sellers through appraisal issues with smart negotiation and strong backup strategies. If you’re dealing with one now—or want to avoid surprises down the line—reach out and let’s walk through your options together.
