What happens if the appraisal comes in low?

Why it matters

Your loan amount is based on the lesser of the purchase price and the appraised value. A gap between them becomes cash you must bring, on top of your down payment.

The four responses

In practice, most low appraisals resolve with one of these.

• Renegotiate the price, in whole or in part.
• Bring the difference in cash if the home is worth it to you.
• Submit a reconsideration of value with stronger, closer, more recent comparable sales.
• Exit under the appraisal contingency if your contract includes one.

Keeping perspective

An appraisal is one professional's supported opinion, not a verdict on the home. In fast moving or unusual markets, disagreement is common. Bring data, not frustration, and the conversation usually goes better.