A low appraisal can stall your sale, but there are three simple steps you can take to keep your home sale on track.

Selling your home is stressful enough. A low appraisal can feel like a punch to the gut. If the number comes in below your contract price, the deal could stall. But don’t panic, here are three things you can do to overcome a low appraisal:

1. Review the appraisal with your agent. The first thing to do is sit down with your real estate professional and compare the appraisal to recent sales or the comparables (comps). 

Was this outcome expected, or does it look like a mistake? If the numbers don’t line up with the comps, you may have a case. In many cases, your agent can share better comps with the lender to push for a reconsideration of value.

“Sometimes the best move is renegotiating with the buyer to close the gap.”

2. Work with the buyer to close the gap. If the appraisal still comes in low, the next move is negotiation. Many buyers are willing to meet you halfway by covering part, or all, of the gap. This can be structured as an appraisal gap agreement, giving both sides confidence to move forward without derailing the deal.

3. Adjust or walk away. If the buyer won’t bridge the gap and the appraisal looks accurate, you may need to renegotiate the price. In some cases, sellers lower the price to match the appraisal. If neither side can agree, your options are to cancel the contract or see if the lender will allow a second appraisal.

A low appraisal doesn’t have to end your sale. With the right strategy, you can keep your deal alive or position yourself better for the next buyer.

If you’re selling soon, or if a friend is running into appraisal trouble, we’d be glad to give you a second opinion. Call or send us a message at (651) 998-9829 or info@holzgroup.com. Our team can review your home’s true market value and help you avoid surprises before you list.