Skip to content
Homiy home page
What's real hereHomes are fictional samples.Prices, rents, taxes and price trends are real public data, with sources.Homiy isn't a licensed brokerage yet and offers no services.See what's real and where it comes from

Menu

Ask HomiySearch homes

Under contract

Is this normal? The appraisal came in low

The loan follows the lower of the price and the appraisal, so a low value leaves a gap. You have options.

Updated · 2-min read

What a low appraisal means

The loan shrinks to the appraised value, so you'd cover the gap, renegotiate or cancel if your contract allows. Rule1

Buying for more than the appraised value is risky. Known1

Your options

  • Get a copy and check the comparable sales.
  • Ask the seller to lower the price.
  • Ask your lender for a reconsideration of value with better comparable sales (one request per appraisal on Fannie Mae loans).
  • Cancel if your appraisal or loan contingency is still open. Rule1,2

In your state

  • Texas: A low appraisal is an exit only if you added TREC's addendum on the lender's appraisal.
  • Illinois: A low appraisal is an exit only with the Multi-Board Appraisal Addendum.
  • Washington: Form 22A sets the notices: yours within 3 days of the appraisal, the seller's answer, then your reply.
  • North Carolina: Form 2-T has no separate appraisal contingency: the risk rides on due diligence. Rule3,4,5,6

Next time: plan before you offer

Lenders lend against the lower of the price and the appraisal, so paying well above recent sales can mean bringing more cash.

  • Ask your agent for recent nearby sales of similar homes.
  • Decide your walk-away number before you write the offer.
  • Plan how you'd handle a low appraisal. Rule7,1

When to call a professional

Your lender, if you have better comparable sales. Ask your lender for a reconsideration of value with better comparable sales (one request per appraisal on Fannie Mae loans). Rule2

Your agent or real estate attorney, before your deadlines. Cancel if your appraisal or loan contingency is still open. Rule1

A HUD-approved housing counselor. HUD-approved housing counselors give independent advice on buying a home and on loan offers, often free or at low cost. Known8,9

Find a housing counselor (opens in a new tab)

Sources

  1. CFPB: My appraisal is less than the sale price. What does that mean for me? · reviewed 2024-09-11; retrieved 2026-10-09 (opens in a new tab)
  2. Fannie Mae Selling Guide B4-1.3-12: borrower-initiated reconsideration of value · retrieved 2026-10-09 (via search excerpt) (opens in a new tab)
  3. TREC One to Four Family Residential Contract (Resale), TREC No. 20-19 · 05-04-2026, mandatory 2026-07-01 (opens in a new tab)
  4. Multi-Board Residential Real Estate Contract 8.0 · 8.0 (2025) (opens in a new tab)
  5. NWMLS Form 22A Financing Addendum (2026 revision, sample copy) · 2026 revision (opens in a new tab)
  6. NCREC: due diligence replaced the financing contingency · reviewed 2026-09-27 (opens in a new tab)
  7. Fannie Mae Selling Guide B2-1.2-01: LTV uses the lower of sales price or appraised value · retrieved 2026-10-09 (opens in a new tab)
  8. CFPB: What is a HUD-approved housing counseling agency, and how can they help me? · retrieved 2026-10-09 (opens in a new tab)
  9. CFPB: Find a housing counselor · retrieved 2026-10-09 (opens in a new tab)

Ask Homiy about this