An appraisal coming in low is one of the most stressful moments in a home purchase. The price you agreed to suddenly does not match the number the lender will use. The deal is not over, but the clock is running, and the choices you make in the next few days matter.

I have been helping Florida buyers since April 2000, and low appraisals are something I work through with clients regularly. Here is how I walk people through it.

Why a Low Appraisal Creates a Gap

Lenders base your loan on the lower of the purchase price or the appraised value. If you agreed to pay $400,000 and the home appraises at $385,000, your loan is calculated on $385,000. The $15,000 difference has to be solved somehow before you can close. (These figures are an example only.)

Your Main Options

1. Renegotiate the price

The appraisal gives your agent a concrete reason to ask the seller to lower the price. In many markets, sellers would rather adjust than relist and risk the next buyer’s appraisal coming in low too.

2. Split or cover the gap

You and the seller can meet in the middle, or you can bring extra cash to cover the difference. Covering it yourself means more money at closing, so make sure you still have the reserves your loan requires.

3. Request a reconsideration of value

If the appraiser missed a better comparable sale, got the square footage wrong or overlooked upgrades, your lender can submit a formal reconsideration of value (ROV) with supporting data. It does not always change the number, but a well-documented request is worth trying when the facts support it.

4. Use your appraisal contingency

If your contract has an appraisal contingency and the gap can’t be solved, it may let you cancel and keep your deposit. Read the contract deadlines carefully and talk to your agent and, if needed, a real estate attorney. I can explain the lending side, but I can’t give legal advice.

5. Rethink the loan

Sometimes a different down payment or loan program helps. Note that on most loans, a new lender usually means a new appraisal. FHA appraisals can sometimes be transferred to another lender. See how appraisal transfers work.

VA Buyers: The Tidewater Process

On VA loans, the appraiser is supposed to notify the lender before finishing a low value, so there is a short window to send in additional comparable sales. This is called the Tidewater process. If you are using a VA loan, make sure your loan officer and agent are ready to respond quickly. More in my Tidewater guide.

Watch: a real VA Reconsideration of Value. On a recent VA purchase, the appraisal came in well below the contract. We worked with both agents, gathered comparable sales, and submitted a Reconsideration of Value. The VA raised the value back to the contract price. Results vary, and not every request changes the value.

Appraisal Problems That Aren’t About Value

If the appraisal came back “subject to” repairs instead of low, that is a different problem with different fixes. See why an appraisal with repairs can kill a deal.

Deal on the Line? Call Before the Deadline

If your closing is at risk, read what to do when a bank says no and call or text me. The earlier I see the appraisal and the contract, the more options we have.

Available for qualified borrowers. Program guidelines apply, and lender overlays may be stricter. All loans are subject to credit approval. Any figures are examples or estimates based on the information provided.

Nathan Young is the founder and president of North Star Mortgage Network, Inc., an independent mortgage brokerage in Jacksonville, serving Florida since April 2000, and the 2025 NAMB Mortgage Broker of the Year. Call or text 904-880-6741. NMLS #325206 | Company NMLS #356789. Equal Housing Opportunity.