The appraisal came in low. You still have options.

What the appraisal gap is, what your contingency allows, and how to ask for a reconsideration of value.

Hands resting on an open printed report at a kitchen table beside house keys and a terracotta mug

What does a low appraisal mean?

An appraisal is an independent opinion of market value from a licensed or certified appraiser. When it comes in under the contract price, the lender bases the loan on the lower figure, not on the price you agreed. The difference is called the appraisal gap. You now have to decide how to close it or cover it.

Contract price
minus appraised value
equals the appraisal gap

What are your options after a low appraisal?

You have five main options. The right one depends on your contract, your lender and your finances. Talk them through with your agent and lender before you choose.

Renegotiate the price

The appraisal gives both sides a shared fact to work from. A seller may prefer a lower price to starting over with a new buyer.

Ask for a reconsideration of value

If the report missed relevant sales or got a fact wrong, there is a formal way to ask the appraiser to look again. More on that below.

Cover the gap

Pay the difference in cash, on top of the down payment, if you can and want to.

Meet in the middle

Split the gap with the seller, sometimes alongside other changes to the deal.

Use your contingency

An appraisal contingency lets a buyer exit or renegotiate if the value comes in under the price. Check its deadline today.

How do you ask for a reconsideration of value?

A reconsideration of value, or ROV, is the formal route to ask the appraiser to review the report with new information. On a mortgage it goes through your lender. The lender is the appraiser's client, and independence rules keep buyers and agents from contacting the appraiser to push on the value.

Bring comparable sales. Recent, nearby sales of similar homes that the report did not use, with the reason each one fits.
Correct factual errors. A wrong bedroom count, a missed bathroom or a living area figure that does not match the home.
Keep it to facts. What you paid, what you need or how much you love the home does not change market value.
Ask your lender for its process. Lenders usually have a form and a deadline. Follow both and the request moves faster.

What an ROV cannot do. It cannot guarantee a change. The appraiser reviews what you send and either revises the value with support or explains why it stands. Either way, you will know which option above comes next.

Common questions after a low appraisal

Can I order a second appraisal?

On a mortgage, the lender controls the appraisal, so ask the lender what it allows. A second appraisal is not automatic, and the first report does not disappear because a second one was ordered.

Does a low appraisal mean I overpaid?

It means the appraiser's opinion of market value, on that date and with that evidence, came in under the contract price. A competitive market, a unique home or few recent comparable sales can all play a part.

Should I walk away?

That depends on your contract, your contingency deadline and your finances, which is why it is a conversation for your agent and lender. This page explains the options. It does not give legal or lending advice.

Want a value on a home before the next contract? Order a residential appraisal from Pocket Appraisal.