--- title: "When the Appraisal Comes In Low | Ondo RE" canonical: https://www.ondorealestate.com/blog/appraisal-comes-in-low/ --- # When the Appraisal Comes In Low The loan is sized from the lower of price or value. Everything else follows from that. [Home](/)[Learn](/learn/)First-Time BuyersFirst-Time Buyers Educational Ondo Real Estate Editorial Team·Published September 17, 2026·4 min read [← Mortgage learning hub](/learn/) ## Key takeaways - Lenders generally size the loan from the lower of contract price or appraised value, so a gap becomes the buyer's cash problem even when income and credit are unchanged. - The usual paths are renegotiating the price, covering the difference in cash, requesting a reconsideration of value, or cancelling under the contract's appraisal condition. - A reconsideration of value is a documented request built on comparable sales the appraiser did not use. It is not an appeal, and many do not change the value. - In Utah this runs on a deadline. Cancelling on value typically needs written notice by the Financing & Appraisal Deadline. Summary only. The detail, the current figures, and the disclosures are in the article below. On this page - [What an appraisal gap is](#what-an-appraisal-gap-is) - [The four paths](#the-four-paths) - [Renegotiate the price](#renegotiate-the-price) - [Cover the difference in cash](#cover-the-difference-in-cash) - [Request a reconsideration of value](#request-a-reconsideration-of-value) - [Cancel under the appraisal condition](#cancel-under-the-appraisal-condition) - [What a reconsideration of value is not](#what-a-reconsideration-of-value-is-not) - [What happens next](#what-happens-next) A low appraisal is one of the few moments in a purchase where nothing about you changed and the file still moved. Understanding why makes the options obvious. Snapshot as of 2026-08. This page does not predict appraised value, promise a reconsideration will succeed, or tell you whether your earnest money is refundable. Read the contract you signed with your agent. ## What an appraisal gap is An appraisal gap is the difference between the contract price and a lower appraised value. Lenders generally size the loan from the lower of price or appraised value, so the gap becomes cash the buyer must cover, a renegotiation, or a cancellation. This is why a low appraisal changes the file even when the buyer's income and credit are unchanged: the loan amount is constrained by value, not by what the parties agreed to pay. ## The four paths The usual paths are renegotiating the price, covering the difference in cash, asking for reconsideration of value with genuine comparable sales, or cancelling under the contract's appraisal condition if that right still exists. - 1 ### Renegotiate the price Often the cleanest fix, and the most common outcome. The seller is not obliged to agree — a low appraisal is information, not an amendment. - 2 ### Cover the difference in cash This is cash on top of the down payment and everything else in the [cash stack](/blog/utah-cash-to-close-besides-down-payment/), and it is not financeable, because the loan is already capped by value. - 3 ### Request a reconsideration of value A reconsideration of value is a documented request based on relevant comparable sales the appraiser did not use. It is not an appeal of the outcome and it is not a renegotiation tool; many requests do not change the value. - 4 ### Cancel under the appraisal condition Available only if that right still exists and the required written notice is given in time. See [Utah REPC deadlines](/blog/utah-repc-deadline-and-your-loan/). The deadline is the real risk In Utah the appraisal condition shares the Financing & Appraisal Deadline, and cancelling on value typically requires written notice by that deadline. Missing the notice can put earnest money at risk even when the appraisal came in low. The REPC says performance dates are not binding on lenders, title companies, or appraisers who are not parties, except as they separately agree. A pre-approval letter, AUS findings, or a hoped-for clear-to-close is not a REPC deadline. Written notice under the contract is what preserves a cancel right. One more reason to file If anything in the report describes you, the neighborhood's residents, or a protected characteristic rather than the property itself, say so explicitly in the request. A reconsideration of value is the channel for raising an appraisal-bias concern, and a complaint can also be filed with HUD or the CFPB. ## What a reconsideration of value is not It is not a negotiation with the appraiser, and it is not a second opinion ordered because the first was disappointing. A reconsideration of value is a documented request based on relevant comparable sales the appraiser did not use. It is not an appeal of the outcome and it is not a renegotiation tool; many requests do not change the value. Send the comparable sales and let the analysis stand on its own. Appraisal and inspection are different reports An appraisal is an opinion of value for the lender. An inspection is a condition report for you. Neither substitutes for the other — see [home inspection vs appraisal](/blog/home-inspection-vs-appraisal/). ## What happens next Ask your loan officer what the loan amount becomes at the appraised value, and your agent what notice the contract requires and by when. Those two answers decide which of the four paths is actually open. [Start a conversation](/qualify/). ## Common questions ### Why does a low appraisal change my loan if my income has not changed? This is why a low appraisal changes the file even when the buyer's income and credit are unchanged: the loan amount is constrained by value, not by what the parties agreed to pay. ### What are my options when the appraisal is low? The usual paths are renegotiating the price, covering the difference in cash, asking for reconsideration of value with genuine comparable sales, or cancelling under the contract's appraisal condition if that right still exists. ### Can I appeal the appraisal? A reconsideration of value is a documented request based on relevant comparable sales the appraiser did not use. It is not an appeal of the outcome and it is not a renegotiation tool; many requests do not change the value. ### Is my earnest money safe if the appraisal comes in low? In Utah the appraisal condition shares the Financing & Appraisal Deadline, and cancelling on value typically requires written notice by that deadline. Missing the notice can put earnest money at risk even when the appraisal came in low. Whether a cancellation returns your earnest money depends on the contract you signed and on giving the required notice in time. Read it with your agent. ### Can the seller just lower the price to the appraised value? They can agree to, and often that is the cleanest fix — but they are not required to. A low appraisal is information; it does not change the contract by itself. On this page - [What an appraisal gap is](#what-an-appraisal-gap-is) - [The four paths](#the-four-paths) - [Renegotiate the price](#renegotiate-the-price) - [Cover the difference in cash](#cover-the-difference-in-cash) - [Request a reconsideration of value](#request-a-reconsideration-of-value) - [Cancel under the appraisal condition](#cancel-under-the-appraisal-condition) - [What a reconsideration of value is not](#what-a-reconsideration-of-value-is-not) - [What happens next](#what-happens-next) ## Keep going [What a Utah REPC Deadline Actually Does to Your Loan Due diligence, financing, and appraisal are separate Utah contract clocks at 5:00 p.m. Mountain Time. A lender timeline is not a REPC deadline. Not legal advice.](/blog/utah-repc-deadline-and-your-loan/)[Home Inspection vs Appraisal: Two Reports, Two Audiences An inspection is your condition report. An appraisal is the lender's opinion of value. They run on separate Utah deadlines and neither substitutes for the other.](/blog/home-inspection-vs-appraisal/)[How Much Cash Do I Need Besides Down Payment in Utah? Earnest money, title, origination, prepaids, and reserves sit on top of down payment. Utah closings vary by county and title company.](/blog/utah-cash-to-close-besides-down-payment/)[Start a mortgage conversation What you will be asked, and what a conversation will not promise. This is not an instant approval, a lock, or a commitment to lend.](/qualify/) ## What to do next Education first. A conversation with a loan officer is how you find out what may actually fit your file. [Talk through the options](/qualify/) Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. [Licensing and disclosures](/licensing/)