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Low Appraisal on Your Triple Crown Home: What Sellers Can Do
Why appraisals come in under the contract price, how to challenge one with better comparable sales, and the options for closing the gap.
Key takeaways
- A financed buyer’s lender orders an appraisal; if it is below the price, the loan is based on the lower figure.
- Pricing from closed comparable sales is the best protection against a low appraisal.
- A reconsideration of value can be requested through the lender with better comparable sales.
- The usual outcomes: the price comes down, the buyer covers the gap, or you meet in between.
- Appraisal gap terms in the original offer decide what the buyer has agreed to cover.
Why appraisals come in low
- Too few recent comparable sales, or comparables that don’t match the home.
- Updates, finished space or features the appraiser didn’t know about.
- A price set above what recent sales support.
- A fast-rising market where sales lag behind current demand.
Preventing it
- Price from closed comparable sales from the start.
- Give the appraiser a list of updates with dates and costs.
- Your agent can share comparable sales that support the price.
If it comes in low
| Option | How it works |
|---|---|
| Reconsideration of value | Submitted through the buyer’s lender with better comparable sales or corrected facts |
| Buyer covers the gap | The buyer pays the difference in cash, often agreed in the offer |
| Price reduction | The price comes down to the appraised value |
| Meet in between | Seller and buyer share the gap |
| Cancel | If the contract allows and no agreement is reached |
Questions sellers ask
What happens if the appraisal comes in lower than the offer?
The lender bases the loan on the appraised value. The price can be renegotiated, the buyer can cover the difference, you can meet in between, or the appraisal can be challenged with better comparable sales.
Can I dispute a low appraisal?
A reconsideration of value can be requested through the buyer’s lender, with comparable sales or facts the appraiser missed.
From The Caldwell Group
Sell your Triple Crown home with a team that knows this market
A low appraisal is a negotiation and a paperwork problem at once. Your agent prices the home so the appraisal is supported from the start, gives the appraiser the comparable sales and updates, and if it still comes in low, prepares a reconsideration request and negotiates the gap.
The Caldwell Group | eXp Realty has closed 66 Triple Crown homes since 2006, 32 of them for sellers, and has helped more than 2,600 families across Northern Kentucky and Cincinnati. We price from real sales, market the home properly and handle every deadline through closing.
Dianna has helped us buy & sell multiple houses over the last 18 years. Her & her team make it as smooth as it could possibly be. Honest, available, professional and charismatic are just some of the words that come to mind. Thank you again Dianna, for helping us through the years!
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