Frequently asked
Can I challenge a low appraisal?
Quick answer
Yes — you can request a reconsideration of value through your lender, providing the appraiser with additional comparable sales data that may not have been considered in the original report. This doesn't always change the outcome, but it's a legitimate first step before assuming the appraised value is final.
Related questions
What happens if the appraisal is lower than the offer?
The gap between the appraised value and the contract price has to be resolved before closing — typically through the buyer paying the difference in cash, the seller reducing the price, both parties splitting the gap, a reconsideration-of-value request, or the buyer exercising an appraisal contingency to cancel the contract.
Can I still get my earnest money back if the appraisal comes in low?
Generally yes, if your contract includes an appraisal contingency and no resolution can be reached with the seller. Without that contingency, walking away from a low appraisal can mean forfeiting your earnest money — which is why waiving it should be a deliberate decision, not a default.
Why do appraisals come in low in a fast-moving market?
Appraisers rely on recent closed comparable sales, which can lag behind current buyer behavior in a rapidly appreciating market — a competitive, well-negotiated offer can still appraise below contract simply because the comps haven't caught up yet.
Should I waive the appraisal contingency to make my offer more competitive?
It can make an offer more attractive to a seller, but it removes your protection if the appraisal comes in low, potentially exposing your earnest money. This is a decision to make deliberately with your agent based on your specific financing situation and how much cash you'd be able to bring to close a gap if needed — not a default move.
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