What happens if the home doesn't appraise?
A low appraisal isn't the end — it's a negotiation point. Your options: renegotiate the price (the appraisal is documented leverage), bring extra cash, split the difference, or exit through an appraisal contingency with your deposit. The market decides which play has power.
Take a breath — a low appraisal changes the deal's math, but it rarely has to end the deal. It's the moment the negotiation reopens with new evidence on the table.
Why it matters mechanically
Your lender sizes the loan against the appraised value, not the contract price — the appraisal gap is the difference, and it needs a funding source before closing.
The playbook, in order
The first move is usually renegotiation: the appraisal is a documented, third-party opinion the seller can't wish away, and they know the next financed buyer's appraiser may well agree. Sellers often meet the appraised value, or meet you partway — a price reduction plus a modest cash contribution is the classic middle. If the home is genuinely worth stretching for, bringing extra cash is a legitimate choice — made calmly against the comps, not in deal-momentum panic. And if the numbers won't converge, an appraisal contingency lets you exit with your deposit intact.
Two lesser-known options
A reconsideration of value: if the appraiser missed genuinely comparable sales, your lender can submit them for review. It succeeds occasionally rather than usually — but it costs almost nothing to try. And sometimes restructuring the loan absorbs a small gap; a lender can tell you in minutes whether that math exists for you.
Tone matters as much as tactics: a low appraisal negotiated with evidence and patience usually finds its landing. If it happens on your deal, we'll price every path — including walking away — before you choose one.
This answer is general education, not legal, tax, or financial advice. Your situation is unique — let's talk through the specifics together.