What Sellers Can Do If a Home Appraisal Comes in Low

When appraisals fall short: Navigating low valuations

If that appraisal comes in lower than your offer, the evaluation can feel anything but fair. While it’s frustrating, it’s also something sellers should be prepared for — because it does happen. The National Association of Realtors (NAR) reports that 5% of contracts experienced delayed settlements due to appraisal issues.

Even though that number is relatively small, concern over low appraisals is still widespread, and it’s influencing buyer behavior. In fact, 20% of buyers have waived the appraisal contingency altogether, which normally lets them walk away if the appraisal doesn’t support the agreed-upon price.

In competitive markets, some buyers choose to waive the appraisal contingency to make their offer more appealing, sometimes covering any gap with cash. When the market shifts and buyers gain more leverage, they tend to be less willing to give up that protection.

But selling a house without contingencies isn’t the only way to go. If an appraisal does come in low, a seasoned and professional agent will know how to handle it and can help you get a second shot. HomeLight can connect buyers and sellers with a top agent in their area.

What does a home appraiser look at?

An appraiser must be qualified and certified in your state and, in most states, adhere to the Appraisal Foundation’s Uniform Standards of Professional Appraisal Practice. They record the layout of your property and assess its condition. They can look for a variety of details, according to the Uniform Residential Appraisal Report form:

Depending on your property’s condition and size, the actual physical evaluation process can be as quick as 15 minutes or as long as two to three hours. The appraiser then searches for similar sales in the area within the prior 12 months, often called comps, and uses their sales prices to determine your home’s fair market value.

The appraiser drafts a report for the lender, which can take a week or two to complete. FHA and VA loan appraisals might take a bit longer because these lenders require more detailed appraisal reports.

Why appraisals come in low

A low appraisal can catch any seller off guard, but it usually has a clear explanation. Knowing why appraisals come in low helps you tackle the situation with confidence instead of panic.

Home price doesn’t reflect the market

Sometimes, when a market moves very quickly, the comps from the last 12 months can’t keep up with current sales prices.

“Usually, the market moves before the appraisers do,” says New York City real estate agent Dylan Hoffman, who gets 95% of his listings sold. “It’s the brokers that set the market, not the banks. We’re always pushing the market up, up, higher, higher. We have to become educators to the banks to let them know what the market’s doing.”

This commonly happened throughout the hot pandemic market, when low inventory and high demand drove sales prices up rapidly. However, this same problem can happen in a sluggish market, where a lack of quality comps makes it tricky to nail down the property’s market value.

Inadequate comparable properties

Your appraisal might also suffer from bad or missed comps. Perhaps a neighboring property was rundown when it was sold, but the new owners have since rehabilitated it. Or, public records haven’t yet recorded a recent sale of a property similar to yours. Foreclosures, bank-owned properties, private sales to relatives, and distressed properties in your area can also skew the comps.

In terms of pricing, if homes in your area tend to sell for about $500,000 — where you’ve set your asking price — and one of the comps that an appraiser has selected sold for $380,000, the whole average drops to $450,000.

Think of an appraisal as the appraiser’s “price opinion,” Hoffman says. “It’s up to the appraiser’s discretion to follow up and figure out why there’s an outlier.” That might mean researching a previous sale through public records or the broker who sold the property.

Inexperienced or overworked appraisers

Some appraisers might be new to the profession or their area and lack local market knowledge. There has also been a shortage of appraisers in recent years, leading to higher workloads for appraisers. High demand for appraisals can lead to appraisers rushing appointments or even doing a drive-by or virtual appraisal.

Still, Jackie Sawyer, a Maine-based real estate agent, said that she rarely sees variance in appraisals due to the appraiser themselves.

“I think there’s a good amount of consistency between the appraisers that we see,” she explained. “I don’t think that there’s any that have a reputation as either being really good or really hard.”

Neglected upkeep

Homeowners tired of having their homes on the market also might have put aside minor household repairs and slacked off on cleaning up. Those little things hurt your appraisal and cast your home in a bad light, too.

While appraisers strive to provide an objective assessment of value, they are still human. Hoffman says that “If they [appraisers] are not wowed by the property and sold on the property while they’re there, that can be an issue.”

How to avoid a low appraisal

To start your appraisal off right, collect any important documents for the appraiser, such as a land survey that verifies your property’s size and receipts for any recent improvements. Have your real estate agent there to talk about any unusual circumstances for low or high sales in your area, and to provide their own comps. Hoffman says he prepares an entire appraisal package, including recent comps and the property’s floor plan.

Then clean up inside and out. Touch up any chipped paint, replace that wonky hinge on the kitchen cabinet, corral any pets, and clear away the clutter. Trim your hedges, mow the lawn, and clean the gutters. You want the appraiser to see that your home is well-maintained.

“Treat it just like you would if it were a buyer,” Hoffman says. “It is a showing. You have to sell to the appraiser.”

You can also pay for an appraisal before listing your home for sale, then set your asking price to match. While this should hopefully eliminate the troubles that appraisal gaps cause, it’s worth noting you’ll still have to get another appraisal after you accept an offer on the home. Sawyer recommends getting a free pricing opinion from a broker instead of spending the money on two appraisals.

“I think appraisers may come in at a different price point if the house is under contract at a certain price point. They may take that into consideration when applying a home value,” Sawyer says. “So, you may not get the same evaluation if you’re doing an appraisal before you list the house.”

What sellers can do if the appraisal comes in low

If your appraisal does come in low, don’t panic. There are still ways to turn this situation around. Here’s what you can do:

1. First, look for errors in the home appraisal.

As the seller, you won’t automatically get a copy of the report when it’s ready, but you can request one, and the lender will have to provide it to you within 30 days.

As you examine the report, double-check the basic data (square footage, number of bedrooms and bathrooms) and how the appraiser described your home’s features. Look for any errors, such as missing the fact that you have energy-efficient appliances and lighting.

2. Challenge an incorrect appraisal with a Reconsideration of Value.

If you and your real estate agent have done your homework and feel confident that the home appraisal was erroneous, you can challenge the appraisal with a reconsideration of value. To file a reconsideration of value, you must argue that the appraiser made an error such as those listed above.

Alternatively, your agent might be able to argue that the appraiser used a poor analysis of comps. Another option is to file a formal complaint with your state appraisal board if you believe your appraiser wasn’t qualified or was potentially discriminating against you.

3. Request a new home appraisal.

If you were able to show that the first appraisal was problematic or inaccurate, the buyer can request a new appraisal with a different appraiser from their lender. Ultimately, this is up to the buyer since they will be footing the bill.

“It’s very hard,” Hoffman says. In some cases, “The deal can die.”

4. Negotiate with the buyer to save the deal.

As the homeowner, it’s your decision whether to hold firm on the asking price or drop to the appraised value. But there are ways to find common ground, and your agent can help you.

“A low appraisal is always an opportunity for renegotiation,” Sawyer said.

For instance, a buyer can make a larger down payment to cover the difference between the appraised value and the asking price or pay private mortgage insurance. You can also make up some of the difference by covering the buyer’s closing costs.

Boost Your Home’s Appraisal Outcome

An experienced agent can help you navigate appraisals, avoid low valuations, and position your sale for maximum value. Hits the right price selling price by partnering with a professional.

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What the 2026 market means for sellers facing a low appraisal

Heading into 2026, the housing market is leaning toward buyers, with 42% of top agents reporting a buyer’s market and 68% expecting more inventory. At the same time, pent-up demand from first-time buyers and rate-locked owners could heat things up quickly once conditions ease.

In hot neighborhoods, this demand may trigger bidding wars, with buyers offering above the listing price to secure a home. When sale prices outpace what appraisers deem fair market value, low appraisals and appraisal gaps can crop up, leaving sellers to navigate the difference.

Even with more homes available, most agents still expect home prices to rise, though modestly, generally under 5%. Many predict growth of just 2% to 3%, roughly in line with inflation.

This means sellers aren’t facing a crash in value, and gradual price gains paired with rising incomes give buyers more purchasing power, keeping the market balanced and active. Moderate price growth also suggests that appraisals will likely track closely with listing prices, giving sellers a realistic baseline to work from.

Avoid appraisal surprises when selling

Regardless of market conditions, sellers can take steps to help prevent low appraisals. Start with basic maintenance. Fix leaky faucets, cracked tiles, and other visible issues that can drag down value. Small updates, like fresh paint, modern lighting, or tidy landscaping, can make a big impression on both appraisers and buyers.

Keeping organized records of recent improvements and comparable neighborhood sales gives appraisers context for your asking price. Finally, partnering with an experienced agent who knows local comps and appraisal trends ensures your home is positioned for the most accurate valuation possible. Use HomeLight’s Agent Match tool to connect with a top-performing real estate professional in your area today.

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