When the Appraisal Comes In Low

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. 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. 2

   Cover the difference in cash

   This is cash on top of the down payment and everything else in the cash stack, and it is not financeable, because the loan is already capped by value.
3. 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. 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.

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.

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.