Definition
When the appraiser values the home lower than you agreed to pay, you've got a problem that needs solving. This could mean renegotiating the price, paying the difference yourself, or walking away if you have the option.
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Find my pathAbout this term
Low appraisal creates gap. Buyer challenges if methodology flawed. Realtor resubmission provides comparable evidence. Professional appraisal challenge succeeds 10-20%. Failed challenge triggers negotiation or cancellation. Appraisal contingency enables cancellation. Common in competitive markets. Emotional reaction common. Professional approach essential. Documentation supports challenges. Appraisal defense by professional appraiser. Mediation available. Careful resolution important.
Pro Tip
Appraisal challenges succeed about 10-20% of the time; gather comparable sales data to support your case if you think the appraisal is wrong.
Example
Appraisal dispute was resolved by providing additional comparables supporting higher value.