Shari Evans Real Estate
Shari Evans
(360) 509-8866(360) 509-8866

What to do with a Low Appraisal

A low appraisal is a lose/lose situation. Having an idea of the situational steps to responds swiftly can save you from losing out on all the hard work that has gone into finding your dream home. Low appraisals need a rescue plan.

First thing first. Most appraisal challenges won’t even be considered if the gap is less 2 % and even then we have to show it is wrong. We are going to look for errors. Read every line of the appraisal report front to back to check for any errors. I have had appraisal report missing bedrooms. Just underreporting the homes square footage can make a huge difference.

Now check the homes the appraisal used to compare with yours. Use your agent to get every scrap of information about these as possible. Do a drive by. Make sure your home was not compared to a home from a substantially different neighborhood, school district, town, or construction area. Is one of the comparables next to a working methlab?

With these errors in hand, request a revised report. If the appraiser ingores your request… oh yes, that happens a lot, you will need to escalate to request the lender to plead to the underwriter for a second appraisal. At this point, you are arguing that not only is the appraisal inaccurate, but that you believe the appraiser is no longer being objective about it. Yeah, it won’t make friends.

However, if your second appraisal supports your claims, the lender is much more likely to disregard the low appraisal and take the second opinion. Did you pick up on the fact that the lender is not required to do so? That is right, they aren’t.

So, if they don’t revise the report to the agreed upon purchase price? What happens next?

If the seller have the equity, they might lower the price to the appraisal price and off we go to the happy closing table. Wouldn’t that be great!? It does happen but pretty rare.

Keep in mind, the buyer has the option of increasing their down payment to close the gap but some buyers refuse to do this because they feel like they are overpaying for the property. Some are willing to kick in a little extra money to get the home they want and bet they will make it up in the time they own the property. The important thing to understand it the lender needs to be part of this conversation to ensure you don’t negotiate yourself out of lender approval.

Mortgage lenders will only fund transactions up to a certain percentage of the appraised value of the home. A low appraisal means the buyer must come up with an increased down payment, the parties must agree to a price reduction or some combination of both of these or the deal is off.


Leave a Reply

About Shari Evans

Picture of Shari Evans

Shari Evans

Real Estate Broker

360-509-8866360-509-8866 main

Better Properties

3123 56th AVE #1 Gig Harbor, WA 98335



I am in the military and Shari was better than the best! I know I will never use anyone else in the Kitsap area while she is still in the business. Shari stuck in there with me while I was trying to find the perfect house for me, even when it took 2... (more)


I was the one who first made with Shari, and it was a good decision as I found out later. Sheri very much knew the area that I lived in and helped me so much in getting all the information that I needed. After filling out a on line questionnaire I think I... (more)


Shari worked very hard to sell our house ,the pictures she had taken were remarkable. She would go out of her way to answer any questions that we had. Our house would probably have sold if we listen to her advice. Due to personal reason, we decided that we... (more)

Review Shari Evans on

Our Location