Purchase · 5 min read
What if the appraisal comes in lower than the price I offered?
October 23, 2026 · Written by Bill Egan, NMLS 7342
Short answer
You and the seller have to close the gap or the deal changes. An appraisal is an independent estimate of the home’s value that the lender uses to set the maximum loan amount. If it comes in below your offer price, the loan will only cover up to the appraised value. You can renegotiate the price, bring more cash, or walk away if your contract allows.
01
Why this comes up
First-time buyers often fall in love with a house and offer the asking price, then worry when they hear the bank’s appraisal might not match.
02
Where this goes wrong
The appraisal arrives lower after you already removed contingencies or spent money on inspections, leaving little time to negotiate or find extra cash before the closing date.
03
What we do about it
We review the appraisal with you and the seller’s agent so everyone sees the exact number the loan can support. We can often order a reconsideration of value if the report missed recent sales.
04
How to get ready
Keep your earnest money contingency open until the appraisal is back. Have a conversation with your agent about the maximum extra cash you could bring if the value comes in short.