Short answerAsk your lender about a reconsideration of value, ask the seller to lower the price or split the difference, cover the gap with cash if you can and still want the house, or use your contract's appraisal or financing terms to end the deal. Act within your contract's deadlines, and ask your agent which options your contract gives you.
Your options
- Reconsideration of value with stronger comparable sales.
- Renegotiate the price down to the appraisal or split the gap.
- Pay the gap in cash if the house is worth it to you and your budget allows.
- End the deal if your contract allows it, within its deadlines.
Remember: paying above appraisal means you start with less equity. The general explainer: what happens when the appraisal is low. The seller's side: seller options.
Frequently asked questions
Does VA protect buyers from low appraisals?
VA rules let a veteran end the contract if the value is below the price, under the required VA escape clause, or proceed by paying the difference.
Should I pay over appraisal?
Only if you understand you start with less equity and the payment still fits your budget.
Keep reading
Looking at a house and not sure what you are getting into?
Ask for a free Before You Offer review. Send me the listing. I look over the photos, the seller's disclosure, and recent sales, then flag likely condition issues and planning cost ranges before you write an offer.
Request a Before You Offer reviewOr call or text (812) 525-5489, or email [email protected].
The Before You Offer review is a REALTOR® and contractor review of the listing, not a home inspection. It is for buyers who are not already working with an agent. If you have an agent, please bring these questions to your agent.
Written by John Long, REALTOR®, 1 Percent Lists Indiana Real Estate. Working contractor who has priced hundreds of home inspection repair requests. Former labor relations negotiator for a major manufacturer and U.S. Coast Guard veteran.
John Long, REALTOR® · 1 Percent Lists Indiana Real Estate · (812) 525-5489 · yourpropertynegotiator.com
This page is general information, not a substitute for a professional home inspection, and not legal, tax, insurance, or lending advice. Ask a real estate attorney about contracts and disclosure, a CPA about taxes, your lender about loan rules, and a licensed inspector or tradesperson about your house. Nothing here guarantees a sale price, net proceeds, repair cost, payment, timeline, appraisal, inspection result, or loan approval. Cost figures are planning estimates, not bids. I own Wardmark Property Operations LLC, a contracting company. You are always free to use any contractor you choose.