A low home appraisal can create unexpected challenges during a home sale, but it doesn't necessarily mean the deal is over. Whether you're buying or selling, understanding why an appraisal came in low and knowing how to respond can help keep your transaction on track. From reviewing the appraisal report for errors to requesting a Reconsideration of Value (ROV), there are several steps you can take to successfully navigate the process.
How to Prepare Before a Home Appraisal
The best time to support your home's value is before the appraiser arrives. While you can't influence the appraiser's opinion, you can make sure they have accurate, relevant information about your property.
Kyle Amerson, franchise owner and development agent at We Buy Ugly Houses®, recommends leaving a simple information packet for the appraiser that includes:
- Three to five recent comparable sales that support the contract price
- A list of completed updates and remodeling projects
- A brief summary of recent showings, feedback, and offers received
According to Amerson, keeping the packet concise is key. Providing relevant information without overwhelming the appraiser gives them helpful context without creating the impression that you're trying to influence the valuation.
What to Do If Your Home Appraisal Comes in Low
A low appraisal doesn't have to derail your home sale. Before giving up on the transaction, take a methodical approach to determine whether the appraised value can be challenged. Start by reviewing the report for mistakes, gathering supporting documentation, and working with your real estate agent and lender to request a Reconsideration of Value if the evidence supports it.
Review the Appraisal Report for Errors
Before filing a formal challenge, review the appraisal report carefully. Look for factual errors such as incorrect square footage, missing bedrooms or bathrooms, overlooked renovations, or comparable sales that are outdated, located too far away, or aren't truly similar to your property. Even small inaccuracies can affect the final appraised value.
Gather Stronger Comparable Sales and Documentation
A successful appraisal challenge relies on objective, data-driven evidence. Gather recent comparable sales located as close to your property as possible with similar square footage, lot size, age, and condition. It's also helpful to include documentation of upgrades, permits, contractor receipts, and any unique features that may not have been fully reflected in the original appraisal.
Request a Reconsideration of Value (ROV)
A Reconsideration of Value (ROV) is a formal request submitted through the buyer's lender asking the appraiser to review additional information or consider more appropriate comparable sales. It's the primary way to challenge a low appraisal without ordering a second appraisal.
A strong ROV includes objective evidence, such as more relevant comparable sales, documentation of recent improvements, or corrections to factual errors in the appraisal report. While there's no guarantee the appraised value will change, presenting clear, well-supported information gives the appraiser additional context to consider.
If the appraised value doesn't change, you still have options. As Amerson notes in the Redfin appraisal guide, the seller can lower the purchase price, the buyer can cover the difference in cash, or either party can exercise an appraisal contingency and walk away from the deal.
Sell Without Worrying About a Home Appraisal
While many low appraisals can be resolved through negotiation or a Reconsideration of Value, not every sale moves forward. If you'd rather avoid lender financing, appraisal contingencies, and the uncertainty that comes with a traditional sale, We Buy Ugly Houses offers another option.
We buy houses as is for cash, so there's no lender-required appraisal. You'll receive a no-obligation cash offer, won't have to make repairs, and can choose a closing timeline that works for you. Contact us today to find out if selling your house for cash is the right fit for you.
