The appraisal came in low and suddenly it is your problem.
The buyer's lender will only lend against the appraised value. That gap has to be closed by somebody, and the somebody is usually you.
Sell without an appraisalWhat a low appraisal actually does
A lender lends against the lesser of the contract price or the appraised value. If the appraisal comes in under contract, the buyer has to bring the difference in cash, you have to reduce the price, or the deal dies.
Buyers who are stretching to afford the house rarely have extra cash sitting behind the down payment. So in practice the pressure lands on the seller.
Appraisals can be challenged, sometimes successfully
A reconsideration of value can be submitted through the lender with better comparable sales, corrections to square footage or bed and bath count, or documentation of improvements the appraiser missed.
It works occasionally, particularly where there is a factual error. It is not fast and it is not likely enough to build a timeline around. Ask your agent to try it and keep other options open.
Cash removes the appraisal entirely
We are not borrowing, so no appraisal is ordered and no lender sets a ceiling. We run our own numbers on comparable sales and repair costs, and we will show you that math.
That does not mean we pay more than the appraiser said. It means the number is ours and it does not get overruled by a third party in week four.
Five questions. That is the whole thing.
We already know your situation from this page. Change it if it does not fit.
Question 1 of 5
What people ask about this
Can I challenge the appraisal?
A reconsideration of value can be submitted through the lender. Factual errors are the strongest basis. Success is not common but it is not zero.
Does a low appraisal follow the house?
On FHA loans the appraisal is generally tied to the property for a period, which affects the next FHA buyer. Conventional appraisals are ordered per lender.
Will your offer match the appraised value?
Not necessarily. An appraisal estimates retail market value in as is or subject to condition. A cash as is offer is a different number and we will explain the difference.
Often it is more than one thing at once
Sell without an appraisal.
No cost, no obligation, and nobody shows up at your door unless you ask them to.