Appraisal Gap Calculator: What Happens If It Comes In Low
If the appraisal comes in under the contract price, the lender only lends against the lower number. This shows the cash difference and what each of your options costs.
Example
On an $850,000 contract that appraises at $825,000, the buyer has to find $25,000 in cash, renegotiate the price, or use their appraisal contingency to walk.
This explains how it works. It isn't legal or tax advice. For your situation, talk to an attorney or CPA.
Step 1 of 3
Contract price
Questions people ask
- Who pays if the appraisal is low?
- The lender lends against the appraised value, so the buyer either covers the difference in cash or the two sides renegotiate the price.
- Can the seller be forced to lower the price?
- No. But a buyer with an appraisal contingency can walk and keep their deposit, which is usually enough reason to talk.
- Can an appraisal be challenged?
- You can ask for a reconsideration of value with better comparable sales. It sometimes works, and it is worth trying before anyone gives up the deal.
Buying next? What would an extra $30K do?
The seller pays your agent. We keep a flat fee. You keep the rest.
See your number*Up to $30K is an estimate on a home priced around $1.03M or more where the seller offers 3% to the buyer's agent, on the $999 plan. Your amount depends on the price, what the seller offers, and your loan. Most lenders apply a credit to closing costs first. Estimates only, not a guarantee.