What If My House Doesn’t Appraise for the Offer Price?

Selling a home in Central Oregon can be exciting—but it can also be stressful, especially when your buyer’s lender orders an appraisal. One common question homeowners face is: What if my house doesn’t appraise for the offer price? Understanding what happens next can help you navigate the process with confidence.

Understanding the Appraisal

An appraisal is a professional assessment of your home’s market value, conducted by a licensed appraiser. Lenders rely on appraisals to ensure that the property is worth the amount they are financing. Even if a buyer is eager to pay your asking price, the bank wants confirmation that the home’s value justifies the loan.

What Happens if Your Home Appraises Low

If your home appraises below the agreed-upon offer price, there are several potential outcomes:

1. Renegotiate the Price – You and the buyer can adjust the sale price to match the appraised value.

2. Buyer Brings Extra Cash – In some cases, the buyer may pay the difference between the appraisal and the offer out of pocket.

3. Challenge the Appraisal – Provide recent comparable sales or highlight home improvements to justify a higher valuation, potentially prompting a second appraisal.

4. The Buyer Can Walk Away – Most contracts have an appraisal contingency, allowing the buyer to back out without losing their earnest money.

How to Minimize the Risk of a Low Appraisal

• Set a Realistic Listing Price – Market-based pricing reduces the chance of a low appraisal.

• Highlight Upgrades and Renovations – Make sure the appraiser is aware of improvements that add value.

• Provide Comparable Sales – Offer the appraiser recent sales of similar homes in your area.

• Keep Your Home Well-Maintained – Clean, well-kept, and staged homes often appraise higher.

A low appraisal isn’t the end of the road—it’s an opportunity to negotiate, provide additional documentation, or work with the buyer to find a solution. By understanding your options, you can navigate the process confidently and still close the sale successfully.

FAQs

Q: Can I refuse to lower my price if the appraisal comes in low?

A: Yes, but the buyer may walk away or need to cover the difference in cash.

Q: How often do appraisals come in below the offer price?

A: It depends on the market. In hot markets, low appraisals are more common due to rapidly rising prices.

Q: Can a second appraisal increase the value?

A: Yes. If you provide additional comparables or evidence of upgrades, lenders may order a second appraisal, which could come in higher.

Q: Should I delay listing my home until market conditions improve?

A: Not necessarily. Pricing strategically and preparing your home for appraisal can help you get the best value without waiting.