What can I do if I disagree with the home appraisal?

If you disagree with a home appraisal, you do have a few options. First, review the appraisal report with your real estate agent and lender to check for any inaccurate information or overlooked comparable sales. You may be able to request a reconsideration of value by providing stronger, more recent comps that support the agreed-upon price. Depending on the loan and lender, it may also be possible to request a new appraisal, although this isn't always guaranteed. You can also negotiate with the buyer to see if they are willing to cover the $10,000 difference, adjust the purchase price, or explore other solutions. A low appraisal doesn't automatically mean the deal is dead it simply means everyone may need to work together to find the best path forward.

The recourse you want exists, but it does not belong to you. It belongs to your buyer. A seller cannot appeal an appraisal, cannot order a reappraisal that the buyer's lender has to accept, and should not contact the appraiser directly. The appraisal was ordered by the buyer's lender, the lender is the appraiser's client, and under the Appraiser Independence Requirements neither the seller nor any agent is permitted to influence appraiser selection or the outcome. So everything below has to run through your buyer. The mechanism is called a Reconsideration of Value, an ROV. Amanda already named it above and she is right, so start with what she wrote. What has changed since this question was posted is that an ROV is no longer a favor a loan officer may or may not do for you. Fannie Mae and Freddie Mac now require lenders to maintain a written, consumer facing ROV process and to disclose it to the borrower, for loans with applications dated on or after October 31, 2024. Five federal agencies, the Federal Reserve, the CFPB, the FDIC, the NCUA and the OCC, issued final interagency guidance on reconsiderations of value on July 18, 2024. Your buyer can ask their loan officer for the lender's ROV process by name, and the loan officer is supposed to have one. What wins an ROV is narrow. Three or more closed sales the appraiser did not use, with full addresses, closing dates, closed prices, distance from your condo, and one sentence each on why they are the better match. Alongside that, material factual errors in the report itself: gross living area, bedroom and bathroom count, floor level, view, deeded parking, storage, HOA dues and what they cover, and the condition rating. What loses an ROV every single time is the argument that values in your city only go up and that you received a full price offer. Appraisers are specifically instructed not to treat the contract price as evidence of value. Now the part that fits your situation. You said the appraiser came from another area. That alone is not a violation. The USPAP Competency Rule does not confine an appraiser to a radius around their office. It does require that an appraiser who is unfamiliar with the market acquire the understanding needed to produce credible results, disclose that lack of familiarity to the client before accepting the assignment, and describe in the report the steps taken to complete it competently. So read the report and look for that disclosure. Then check the comparables against how condo value actually behaves in San Francisco, where a few blocks, a floor, a view, an elevator, and whether the parking is deeded can be worth well more than ten thousand dollars. If the comps cross into a different district, ignore the parking, or treat a low floor as equivalent to a high one, that is your ROV argument. Make it as a factual comparables argument, not as an accusation about competence. Factual arguments get values changed. Accusations get a defensive appraiser. If you truly believe the appraiser was not competent, or that the value was influenced by a protected characteristic, California licenses appraisers through the Bureau of Real Estate Appraisers, and BREA accepts complaints through an online form. Be honest with yourself about what that accomplishes. BREA can discipline a license. It cannot change your value, cannot award damages, and will not move on your escrow's timeline. The ROV is the route that can actually save this deal. Bias matters, and the whole ROV framework was built in response to appraisal bias findings, so if that is your concern, raise it inside the ROV, where the lender is required to handle it. The practical menu on ten thousand dollars is short. Your buyer brings the difference in cash on top of the loan. You reduce. You split it five and five. Or your buyer moves to a different lender, which triggers a fresh appraisal from a new appraiser, and that is legitimate. What is not legitimate is the same lender reordering an appraisal simply hoping for a bigger number. That is value shopping and it is prohibited. Before you concede anything, check the calendar. Under the C.A.R. Residential Purchase Agreement the appraisal contingency stands on its own, separate from the loan contingency, and the default removal period is 17 days after acceptance, though parties change that all the time so read your contract. California contingencies do not expire quietly. The buyer has to remove them in writing. If your buyer has already delivered a written removal of the appraisal contingency, they carry the gap, and your ten thousand dollar problem may already be theirs. One honest note on geography. I am Zoltan Peresztegi, a California real estate professional working the same statewide rules and the same C.A.R. forms you are dealing with, so the process above is solid ground. I am not your local agent. San Francisco is roughly 380 miles north of me. I work Los Angeles, the South Bay and the Palos Verdes Peninsula, and condo values up there turn on building level detail I do not track. If you would like an introduction to a Bay Area professional who does, I am glad to make one. Zoltan

Yes. You do have options, and a low appraisal doesn't automatically mean you need to lower your price. First, have your Realtor review the appraisal for incorrect information or weak comparable sales. If there are better recent sales that support the agreed price, the buyer can ask their lender for a Reconsideration of Value (ROV). If the appraisal remains $10,000 low, you can: Ask the buyer to cover the appraisal gap. Negotiate and split the difference. Reduce the price if keeping the deal together makes sense. Review whether the buyer has an appraisal contingency, which may give them the right to cancel if the property doesn't appraise. I wouldn't immediately reduce the price by $10,000. For a relatively small appraisal gap, I would first challenge legitimate errors and then negotiate. A good Realtor should provide strong comparable sales and work with the buyer's agent and lender to protect your price while keeping the transaction moving forward.

A low appraisal doesn't necessarily mean the deal is over. If you believe the appraised value doesn't accurately reflect your home's market value, there are a few options to consider. First, ask your real estate agent to review the appraisal report for errors. Sometimes appraisers use outdated or less comparable sales, miss recent upgrades, or overlook important features that can affect value. If that's the case, your agent can work with the buyer's lender to submit a **Reconsideration of Value (ROV)** with stronger comparable sales and supporting documentation. You can also ask the buyer's lender whether a second appraisal is an option. While lenders aren't required to order a new appraisal, they may do so if there are legitimate concerns about the accuracy of the original report. If the appraisal remains $10,000 below the contract price, you still have choices. The buyer can pay the difference out of pocket, you and the buyer can negotiate a new purchase price, or you can meet somewhere in the middle. In some cases, if the financing falls through because of the appraisal, you may choose to put the home back on the market. A $10,000 appraisal gap isn't uncommon, especially in a market where prices are changing quickly. The most important step is reviewing the report carefully with your agent to determine whether it's truly supported by the market or if there's a valid reason to challenge it.

A low appraisal doesn't necessarily mean the deal is over. If you believe the appraisal is inaccurate, you may be able to challenge it by providing better comparable sales or pointing out factual errors in the report. Your real estate agent can often help gather this information for the lender to review. If the value doesn't change, the buyer and seller can still negotiate. The seller might lower the price, the buyer could bring in additional cash, or both sides may agree to meet somewhere in the middle. In some situations, a second appraisal may be possible, but that depends on the lender and the circumstances. Every transaction is different, so it's a good idea to review the appraisal with your agent and lender to determine the best path forward based on your specific contract and market conditions. 🏡

Yes, you may have some options. If you believe the appraiser missed important comparable sales, upgrades, or made factual errors, you can ask the buyer's lender to request a reconsideration of value. While getting a completely new appraisal isn't common, it can happen in some situations. If the appraisal doesn't change, the buyer and seller can negotiate. The buyer may bring additional cash to cover the gap, you might agree to lower the price, or both sides can meet somewhere in the middle. Since the difference is only $10,000 and you already have an offer at asking price, there's a good chance a reasonable compromise can keep the deal together.

You can appeal but they are rarely successful. Keith Jean-Pierre Managing Principal The Dapper Agents Real Estate Operations in ALL 50 States

Request a Reconsideration of Value (ROV). You must provide the appraiser with at least three "Better Comparables"—similar homes sold within the last six months that the appraiser missed. Point out specific "Material Errors," such as incorrect square footage or uncounted upgrades (like a new ADU or solar system). If the ROV fails, you can request your lender to order a second appraisal, though you will likely have to pay for it.

You can challenge the appraisal by submitting a reconsideration of value with better local comparable sales and details of upgrades. You can also request a new appraisal (usually paid for by the buyer), or renegotiate the price or terms if the value doesn’t change.

Have your agent review the appraisal and see which properties the appraisers chose as comparable and see if you need to order a second appraisal.

Have your agent review the appraisal and see which properties the appraisers chose as comparable and see if you need to order your own appraisal. Does the buyer have contingencies? If not, they will have to pay the purchase price anyway and cover the $10K gap. If they do have contingencies, do they have enough cash to cover the difference? Can you meet in the middle? Can the lender give them any credits? Lots of ways to deal with this. Good luck.

Hi Natalie. It is a week since your post and I am hoping that you have resolved your issue. I can say that here in PA, it would be the buyer who would have to agree to challenge the appraisal as it is their lender and appraisal. First I look for errors in the appraisal. This is your best argument for a reevaluation of value. If buyer and seller agree to dispute, the agents can submit more appropriate comparable sales in hopes that the appraiser will reconsider. There is usually a form that needs to be completed. Best of luck with your transaction.

May be different in your state. Here in Georgia we would find comparable sold listings form the past 6 months, no more than 5 miles away from the subject property, and resubmit them to the appraiser. There are no guarantees unfortunately.