What Happens If the Appraisal Comes in Low?

You’re under contract, everything seems to be moving along, and then the appraisal comes back lower than the purchase price. Now what? Do you have to bring more money? Does the seller have to lower the price? Can you renegotiate? Or can you challenge the appraisal? A low appraisal can create a problem, but it does not automatically mean the deal is dead. In this video, I break down what can actually happen when an appraisal comes in low, including: How an appraisal gap is created Why the buyer does not automatically have to bring the entire difference When the seller may lower the purchase price When the buyer may cover some or all of the gap How the buyer and seller may renegotiate Why an appraisal-gap provision matters When there may be a legitimate reason to challenge the appraisal Why your purchase agreement can determine what happens next Using a simple example: Purchase Price: $300,000 Appraised Value: $290,000 Appraisal Gap: $10,000 That $10,000 difference does not automatically mean the buyer has to bring another $10,000 to closing. There may be several options. The important thing is to understand the appraisal, understand the purchase agreement, and understand your options before making a decision. In the next video, I’m breaking down how a low appraisal can actually be challenged and what kind of information may support a reconsideration of value. If you know someone buying a home who is worried about the appraisal, feel free to share this video with them. William “Blake” Eager IV Senior Loan Officer | Legacy Mortgage NMLS #872138 (734) 752-7253 weager@legacy-mortgage.com Start here: https://myloan.legacy-mortgage.com/dr... Legacy Mortgage NMLS #1759275 Equal Housing Lender Information provided is for educational purposes only. Appraisal requirements, loan-to-value calculations, appraisal contingencies, appraisal-gap provisions, contract rights, and available options may vary depending on the loan program, lender, property, purchase agreement, and applicable state or local requirements. #HomeAppraisal #HomeBuying #MortgageTips #FirstTimeHomeBuyer #TheEagerEdge