Frequently Asked

What happens if a home appraises below the purchase price?

Buyer GuideBy Laurel Seymour

Quick Answer

The lender will generally lend based on the lower value, so the parties must resolve the gap. Options include renegotiating the price, the buyer covering the difference in cash, asking the lender to reconsider the value with additional comparables, or terminating if the contract has an appraisal contingency.

Portrait of Laurel Seymour, founder of Seymour Realty Group

Laurel Seymour

Austin Realtor · TX License #617201 · About Laurel

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