Frequently Asked
What happens if the home appraises below the offer price?
Quick Answer
If a buyer has an appraisal contingency, they can typically renegotiate the price or walk away if the home appraises below the agreed purchase price. Without that contingency, the buyer is contractually obligated to cover the shortfall in cash at closing. A middle-ground option is agreeing to cover a specific, capped appraisal gap amount rather than waiving the contingency entirely.
More people also ask
Related articles from the blog
Buyer Guide
NewHome Warranties in Texas: What They Cover, What They Cost, and Whether They're Worth It
A home warranty isn't homeowners insurance, and it isn't a guarantee that everything will be fixed. A clear look at what these plans actually cover, the exclusions that trip people up, and when one makes sense.
Buyer Guide
NewHome Appraisals Explained: How Lenders Value an Austin Home and What Happens If It Comes In Low
The appraisal is the step that can quietly change a deal. How appraisers decide on a value, how it differs from an inspection, and what buyers and sellers can do if the number comes in below the contract price.
Buyer Guide
Buyer Representation Agreements and Agent Compensation in Texas: What Changed and What It Means for You
Since the 2024 industry settlement, buyers are more likely to be asked to sign a written agreement before touring homes. A plain-English guide to how buyer's agent compensation works now, what's negotiable, and what to ask before you sign.
When you're ready
Need help with your Austin move?
Reach Laurel directly for a focused, no-pressure conversation about buying or selling in Austin.
Talk to Laurel