What If the Appraisal Comes In Lower Than the Offer Price?

When an appraisal comes in below the agreed price, lenders will only finance up to the appraised value — creating what’s known as an appraisal gap. You can either renegotiate with the seller, increase your down payment to cover the gap, or, in some cases, challenge the appraisal with supporting evidence.

In my experience, appraisals reflect market conditions, but they’re not always perfect. Having an experienced agent who can present strong comparable sales and negotiate creatively can often resolve these situations without jeopardizing the deal.