So, you're buying a house. You've got an accepted offer—let's say it’s for $1,000,000—and everything’s moving along… until the appraiser shows up. A few days later, the lender calls:
“The appraisal came in at $950,000.”

Now what?

First, Don’t Panic

This happens more often than you think, especially in markets where prices are moving quickly or there’s stiff competition. It’s not the end of the deal, but it is something you’ll have to deal with.

Why It Matters

Your lender is giving you a loan based on the appraised value, not the purchase price. That means if you’re putting 20% down, they’re calculating 20% of $950,000—not $1,000,000. So you’re now short by $50,000.

Here are your options:

1. Pay the Difference

If you really want the house, you can just bring in the extra $50,000 out of pocket. Not ideal, but sometimes necessary—especially in a competitive market where sellers aren’t budging.

2. Renegotiate the Price

You can go back to the seller and say,

“Hey, it appraised for $950K, and I’d like to lower my offer to match that.”

Some sellers may be open to that, especially in a cooler market. But in a hot market, they might just move on to the next buyer.

3. Split the Difference

This is a common middle ground. You and the seller agree to meet halfway. In this case, they come down $25,000, you come up $25,000, and everyone moves forward. It's a win-win when both sides want the deal to close.

Low Appraisal ≠ Dead Deal

A low appraisal isn’t great, but it doesn’t have to kill the deal. With a little creativity—and the help of a solid agent—you’ve got options.

If you ever find yourself in this situation and need guidance, message us. We’ll help you figure it out.