Going back to the example provided earlier, who covers the $10,000 discrepancy between your offer of $390,000 and the appraisal of $380,000? The lender took it upon himself to ask for a new appraisal, uploaded the counter of $275,000. While itâs always great for the property appraisal to come back higher than the amount you agreed to buy it for, this is no way affects the loan amount you need to qualify for, or the down payment you need to close on the mortgage loan. A low appraisal is bad news because the lender will only provide a loan up to the appraised value, overriding your agreed-upon purchase price. We just had an appraisal come back today on a house for $89k that we have under contract for $75k. Toggle Navigation (800) 251-9080 (800) 251-9080 Seems to me that when the appraisal comes in at the purchase price, you have a lazy appraiser. You may want to evaluate the data and other logistics used for how the appraised value was determined. We just got a note last night that the appraisal came back low by $2000 (Contract price $237,500). However, they have not actually asked us for anything yet, such as to lower the purchase price to the appraised price. If the appraisal comes in low and all else fails, a buyer can cancel the transaction and receive back their earnest money deposit. However, buyers should be aware of contingency deadlines. Different appraisers may use different comparable sales to derive their value. There are a few things you can do. Below are some of the options for handling this scenario: The buyer can make up the difference. The appraisal came back at $264,000. Here's what you can do if that happens. Both conventional and unconventional mortgage products offer similar requirements. Lazy seems a little harsh. Cautious seems more appropriate. Also in this particular study, when an appraisal came in low the odds of the contract not closing (within 90 days) increased almost 10 percentage points. And miraculously the new appraisal came in at $280,000. Even if your appraisal comes in lower than what your house is listed for on the market, there are still a few ways to salvage the sale. Either way, about half the time when an appraisal comes in lower than the price in the contract, the price is negotiated down with the seller and the sale closes at the lower renegotiated price. See below: 1. The appraisal has come around 4.5% lower than I had expected. Stinson estimates that when an appraisal comes back low, he is able to find a solution and complete the transaction about 75% of the time. The good news is that a low appraisal doesnât have to be a deal killer. The appraiser came on Dec 7 and we hadn't heard anything, so we figured it was fine. When asked, they appraisal company added another comparable to the report that shifted the appraisal value up slightly. Dispute the Appraisal. Remember, an appraisal is an opinion of value. 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