How to Handle Low Appraisals During a Sale
- Scott Sweeney
- Aug 4
- 2 min read
A low appraisal can be a major roadblock in a real estate transaction. When the appraised value of a home comes in lower than the agreed-upon purchase price, it can create tension between buyers, sellers, and lenders.
But a low appraisal doesn’t have to kill the deal. Here’s how buyers and sellers can navigate this situation successfully.
🔍 Why Do Low Appraisals Happen?
The appraiser found fewer comparable sales (comps) in the area.
The market has shifted recently, and sales data hasn’t caught up.
The home needs repairs or has unique features that are hard to value.
✅ Options for Buyers and Sellers
1️⃣ Request a Reconsideration of Value (ROV)
Provide additional comps or point out errors in the appraisal report. Sometimes a revised appraisal can bridge the gap.
2️⃣ Renegotiate the Purchase Price
The seller may agree to lower the price to match the appraised value—especially if there aren’t other strong buyers.
3️⃣ Split the Difference
Buyer and seller can meet in the middle, reducing the gap without either party taking the full hit.
4️⃣ Buyer Pays the Difference in Cash
If the buyer has funds, they can cover the gap between the appraised value and the purchase price.
5️⃣ Cancel the Contract
If the deal included an appraisal contingency, the buyer can walk away without losing their earnest money.
💡 How to Prevent Low Appraisals
Price the home accurately using updated comps.
Provide a detailed list of upgrades to the appraiser.
Make sure the home is in good condition for the appraisal visit.
✅ Final Thoughts
A low appraisal can feel like a deal-breaker—but with the right approach, buyers and sellers can work together to find solutions that keep the transaction moving forward.
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About Scott Sweeney
SweeneySells
Full Time Realtor 13 Years +
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CSUS Business & Marketing Graduate 2006
With quickly serving over a 100 families, Scott Sweeney has become a top 5% producing Realtor in the greater Sacramento area who has helped clients from the Bay Area to South Lake Tahoe. Scott has a Bachelor Of Science in Business Administration, with a concentration in Marketing from CSUS. His education, and extensive background in the hospitality, marketing, and real estate industries, have helped Scott to become one of the leading, and most sought after agents in the area.
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