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What Happens If a Home Doesn’t Appraise for the Offer Price? 

What Happens If a Home Doesn’t Appraise for the Offer Price? 

When a buyer makes an offer, the seller accepts it. Till then everything seems to be moving ahead until the appraisal comes back lower than expected. It’s not ideal, but it doesn’t mean the deal is over.

Here’s how most situations are handled with the help of a real estate agent who knows how to manage it the right way:

1. Re-Negotiate the Price with Guidance

A real estate agent will typically begin by reviewing the appraisal and explaining where the property may be falling short. If the seller is open to it, the agent can help rework the offer so it’s closer to the appraised value. This keeps things fair and keeps the deal alive without wasting time.

2. Help the Buyer Cover the Gap Strategically

Sometimes the buyer still wants the home badly enough to cover the difference. In that case, the agent helps them review the numbers and determine if it fits their loan or budget without any hassle. It’s not about being pushy, it's about assisting them to make a wise decision if they want to move forward.

3. Find a Middle Ground That Works for Everyone

Often, the buyer and seller agree to split the gap. A good agent helps figure out how that can work in a way that feels fair to both parties. It’s less about winning and more about getting to the finish line with both parties on board.

4. Request a Re-Appraisal or Review

Sometimes the agent might feel the appraisal missed key details. In that case, they can gather extra information and ask the lender for a second look. It doesn’t always change the outcome, but it gives the deal another chance before anyone walks away.

A low appraisal can be stressful, but it doesn’t have to be the end of the road. With an experienced agent handling the steps, there’s usually a way to move ahead without losing the deal or overpaying. It’s all about knowing how to respond and having the right support in your corner.

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Lisa & Company International Realty

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Lisa Watt of Lisa & Company International Realty is a real estate licensee affiliated with Compass, a licensed real estate broker, and abides by equal housing opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage.
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