# Can You Still Buy a House After a Low Appraisal?
A low appraisal doesn't kill a home purchase, but it forces buyers into uncomfortable choices. When a property appraises below the agreed-upon sale price, the lender will only finance based on the lower value, leaving buyers to cover the gap themselves or renegotiate.
Here's how this plays out in practice. If you agree to buy a home for $400,000 but it appraises at $380,000, your lender funds only $380,000 (assuming a 20 percent down payment). You now owe an extra $20,000 at closing, pay a larger down payment percentage, or walk away and lose your earnest money.
Buyers have several paths forward. Negotiate with the seller to lower the price to the appraised value. This works best in soft markets where sellers face inventory pressure. Bring more cash to the table and increase your down payment. Request a new appraisal if you believe the first one was inaccurate, though this costs $400 to $800 and takes time.
Some buyers contest the appraisal with their lender, presenting recent comparable sales or highlighting property improvements the appraiser missed. This occasionally convinces lenders to accept the original price, though success rates vary.
Walking away remains an option. If you included an appraisal contingency in your offer, you can exit without losing your earnest money. However, appraisal contingencies are rare in hot markets where sellers demand stronger offers.
For sellers, a low appraisal signals trouble. A buyer who can't cover the gap may default or back out. Price reductions now become necessary to maintain the sale.
Landlords and real estate investors face similar appraisal issues when refinancing. A property that ap