Answers by Janet Jones

A low appraisal doesn't necessarily mean the transaction is over. There are several options available, and the best approach depends on the terms of your purchase contract and the willingness of both parties to negotiate. Common options include: -Renegotiate the purchase price. The seller may agree to reduce the price to the appraised value or somewhere in between. -Increase your down payment. If you still want to purchase the home, you may choose to pay the difference between the appraised value and the agreed-upon purchase price, subject to your lender's requirements. -Request a reconsideration of value. If there are factual errors in the appraisal or comparable sales that were overlooked, your lender may be able to request that the appraiser review additional market data. Challenge the appraisal. In some cases, a second appraisal may be possible, depending on your lender and loan program. Exercise your appraisal contingency. If your contract includes an appraisal contingency and an agreement cannot be reached, you may have the option to terminate the contract without forfeiting your earnest money, subject to the contract terms. your REALTOR®, will review the appraisal with you, communicate with your lender, evaluate the comparable sales, and negotiate with the seller on your behalf to help you achieve the best possible outcome. Every situation is unique, and the best strategy will be determined that best protects your interests while working toward a successful closing.