How to Handle a Low Appraisal as a Seller

What do you do if the appraisal comes in lower than the buyer’s offer?
A low appraisal doesn’t have to kill the deal, but it does mean you’ll need to pivot quickly and strategically.

1. Understand the gap

• If the buyer’s lender won’t approve the full offer amount, you’ve got a shortfall.
• That difference has to be made up by renegotiation, additional cash, or a price reduction.
  

2. Review the report

• Ask your agent to look over the appraisal for errors or missed comps.
• You may be able to challenge it with better data.
  

3. Negotiate a solution

• You can lower the price, ask the buyer to pay the difference, or meet halfway.
• Sometimes, buyers split the gap or waive the contingency if they’re eager to move forward.
  

4. Consider a second opinion

• If the appraisal seems way off, the buyer can request a new one, though it’s not always granted.
  

Final takeaway

Appraisal gaps are more common than you’d think. Stay calm, review the facts, and work with your agent to protect your deal.