What Are My Options If the Appraisal Comes In Low in Florida?

A low appraisal — where the appraiser values the property below the agreed purchase price — is one of the most common complications in a financed Florida real estate transaction. Here are your four options.

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Option 1: Renegotiate the Purchase Price

The most common resolution is to ask the seller to reduce the purchase price to the appraised value. Sellers are often willing to negotiate because:

• They want to close the deal
• Starting over with a new buyer means another appraisal, which may come in at the same value
• A price reduction is often less disruptive than losing the deal

Your agent will present the appraisal to the seller and negotiate on your behalf.

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Option 2: Pay the Appraisal Gap in Cash

If you have the cash available and want the property at the agreed price, you can make up the difference between the appraised value and the purchase price out of pocket.

Example: Purchase price $600,000, appraised value $575,000. You would need to bring an additional $25,000 to closing (on top of your normal down payment and closing costs).

This option makes sense when:

• You believe the property is worth the purchase price despite the appraisal
• The gap is small relative to the purchase price
• You have the cash available

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Option 3: Challenge the Appraisal

If you believe the appraisal is inaccurate, you can request a reconsideration of value (ROV). To support an ROV, your agent should identify:

• Recent comparable sales the appraiser did not use
• Errors in the appraisal report (incorrect square footage, missing features, etc.)
• Sales that are more similar to the subject property than the comps the appraiser used

The appraiser reviews the additional information and may revise the value upward. This process typically takes 5–10 business days.

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Option 4: Cancel the Contract

If your contract includes an appraisal contingency and you cannot reach agreement with the seller, you can cancel the contract and receive your earnest money back.

This is the right choice if:

• The seller will not reduce the price
• You cannot or do not want to pay the gap
• The ROV did not result in a higher value

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What If You Waived the Appraisal Contingency?

If you waived the appraisal contingency to make your offer more competitive, you do not have the right to cancel based on a low appraisal. You must either make up the gap in cash or lose your earnest money.

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FAQ

How long do I have to respond to a low appraisal?

The timeline depends on your contract. The Florida Realtors standard contract gives the parties a specific number of days to resolve appraisal issues. Review your contract carefully.

Can the seller refuse to reduce the price?

Yes. The seller is not obligated to reduce the price. If the seller refuses and you have an appraisal contingency, you can cancel the contract.

Is a low appraisal common on the Emerald Coast?

It can happen, particularly in fast-moving markets where prices are rising faster than appraisers can document with comparable sales.

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Dealing with a low appraisal on your Emerald Coast purchase? I can help you navigate your options.

— Kinsey Haddock P.A., Broker Associate | Coldwell Banker Realty — Panhandle | License #BK3253849