A low home appraisal can throw a wrench in your plans. Whether you’re selling or refinancing, it affects your numbers—and your next steps.
First, review the appraisal report. Check for errors. Look at the square footage, upgrades, and comparable sales. If something looks off, you can dispute it. You’ll need solid evidence—recent sales of similar homes, receipts for renovations, or photos of features the appraiser missed.
If the appraisal still stands, talk to your lender. In a sale, the buyer may try to renegotiate. You can meet them halfway, ask them to cover the difference, or walk away. If you’re refinancing, you might not qualify for the amount you want. That could mean waiting, reapplying, or accepting different terms.
You can also request a second appraisal. It costs money, and the outcome might not change—but it’s an option. Some lenders allow it, others don’t. Ask before moving forward.
If you’re selling, keep your agent in the loop. They can help reprice the home or adjust your strategy. If you’re refinancing, speak with your mortgage broker about alternatives.
A low appraisal doesn’t have to stop you. But it does mean you’ll need to adjust. Stick to the facts, stay calm, and make your next move with the numbers in front of you.
