The Appraisal Came In Low. What Are Your Options?

Your contract says one number. The appraisal came in low, under that number. And now everyone in the deal is waiting to see what you do.

This is one of the few moments in a mortgage where you have real leverage and most buyers don’t use it. There’s a formal process for challenging a valuation, the rules got rewritten recently, and it belongs to you rather than to your agent or your lender. Here’s how it works.

What does it mean when the appraisal came in low?

It means the appraiser’s opinion of market value landed below your purchase price. It does not mean your loan is dead.

Understand what the lender is actually doing with that number. A lender lends against value, and when the appraised value and the contract price disagree, the lender uses the lower of the two. The contract doesn’t change on its own. The gap between the two numbers just has to get resolved somehow before anyone closes.

An appraisal is an opinion supported by evidence. Opinions can be wrong. Evidence can be incomplete. That’s exactly why a formal challenge process exists.

When do you get to see the appraisal?

You’re entitled to a copy, and the timing isn’t optional for the lender.

Under the ECOA valuation rule at 12 CFR 1002.14, your lender has to give you a copy of every appraisal and other written valuation developed for your loan. It comes promptly once the report is complete, or at least three business days before you close, whichever happens first.

So read it. Actually read it, not just the number on the front. Check the square footage, the bedroom and bath count, the condition rating, whether the garage or the screened porch made it in, and which sales the appraiser used as comparables.

Factual errors are the most fixable thing in this entire process, and nobody but you is going to notice that your third bedroom got counted as a den.

What is a reconsideration of value?

A reconsideration of value — everyone says ROV — is a formal request asking the lender to have the appraiser look again, based on information the appraiser didn’t have.

Fannie Mae’s rules on this live in Selling Guide B4-1.3-12, and the borrower-facing version of the process took effect in 2024 with further updates effective September 3, 2025. The short version of what changed: you have a defined right to request one, your lender has to tell you about it, and the lender has to run a real process rather than brushing it off.

The disclosure explaining how to request an ROV comes to you along with the appraisal. It’s easy to miss in a stack of PDFs. Look for it.

One clarification that saves confusion later. An ROV is not a second appraisal and it’s not a new appraiser. It’s the same appraiser, reviewing new evidence, with the option to revise the report or explain why they’re standing by it.

What can you actually submit?

Up to five comparable properties, and one ROV request per appraisal.

Those limits are real, so spend them well. Five is your ceiling, not a quota, and three strong comps beat five weak ones every time. Since you only get one bite, gather everything before you submit rather than sending pieces as you find them.

The lender also has work to do here. Your lender completes its own review of the appraisal first, then sends the ROV to the appraiser. That’s a required step, not a delay tactic.

What makes a comparable sale worth submitting?

Closed sales that a reasonable person would call equivalent. That’s the whole standard.

What helps your case:

• Sales that actually closed, with recorded dates and prices
• Properties genuinely similar in size, age, condition, and location
• Recent sales, since a stale comp carries little weight
• A short, factual note on why each one fits better than what the appraiser used

What doesn’t help: an automated estimate from a real estate website, current list prices, what your neighbor claims they were offered, or your own feeling about what the place is worth. None of that is evidence an appraiser can use, and submitting it burns your one request.

Your real estate agent has access to closed sale data and can pull candidates quickly. This is a good moment to lean on them.

Why do low appraisals happen more often on the Grand Strand?

Because our housing stock makes clean comparisons genuinely hard.

Condos are the clearest case. Two units in the same building can differ by floor, by view, by whether the renovation happened in 2009 or last year — and an appraiser working from limited recent sales inside that project has to make judgment calls. Beyond value, condo projects carry their own approval questions, which I covered in my post on how Fannie Mae’s condo rules affect financing here.

New construction creates a second version of the problem. In Carolina Forest and Forestbrook, a builder may be selling a floor plan that has no closed resale history at all yet. Comparing it to an older home a mile away isn’t obviously right.

Then there’s the coast itself. Oceanfront, second row, and a few blocks inland are three different markets sitting within walking distance of each other. An appraiser who doesn’t work this area every week can flatten those distinctions without meaning to.

What are your options if the value doesn’t change?

Four, and none of them is a disaster.

Renegotiating with the seller works more often than people assume, especially when the seller knows the next buyer’s appraisal will likely land in the same place. Covering the difference between the appraised value and the contract price yourself is the second path. Walking away is the third, if your contract has an appraisal contingency protecting you. Or you keep the deal at the appraised value and adjust the structure of your financing.

Here’s the honest part. Sometimes the appraiser is right. If three independent sets of eyes look at the file and the number holds, that’s information worth having before you overpay, not an obstacle to beat.

And if your current lender simply told you the value is final without explaining the ROV process, get a second opinion on the whole file. That’s what a second look on another lender’s file is for.

What can’t you do?

Three things, and the last one has a hard deadline.

You can’t choose your appraiser. Appraisers get assigned independently of the loan sales process, on purpose, so nobody can shop for a number.

You can’t call the appraiser yourself to argue. Everything routes through your lender. That protects the independence of the valuation, which ultimately protects you.

And you can’t request an ROV after the loan closes. Once the file funds, that door shuts permanently. Whatever concerns you have about the value belong in the window between receiving the report and reaching the closing table.

What’s the one thing to do?

Open the appraisal the day it lands and read the comparable sales grid.

Not the summary. The grid — the page where the appraiser lists the sales used and the adjustments applied. If a comp is in a different neighborhood, closed a long time ago, or is meaningfully smaller than your house, you’ve found your argument. Flag it to your loan officer that same day.

Files get killed by clocks more than by numbers. Two days of reading time is almost always available. Two weeks usually isn’t.

Let’s get ahead of the valuation

If you’re writing an offer on a condo, a new build, or anything near the water, let’s talk about what the appraisal is likely to do before you sign — and what your plan is if it comes in under contract. Get pre-qualified and we’ll build that plan up front.

Frequently asked questions

What is a reconsideration of value on an appraisal?

A reconsideration of value, or ROV, is a formal request asking your lender to have the appraiser review the report again based on information the appraiser didn’t have. It isn’t a second appraisal or a new appraiser. Fannie Mae’s requirements appear in Selling Guide B4-1.3-12, with updates effective September 3, 2025.

How many comparable sales can I submit with an ROV?

Up to five comparable properties, and you can request one reconsideration of value per appraisal. Your lender completes its own review of the appraisal before sending your request to the appraiser. Because you only get one request, gather all of your supporting sales before submitting.

Am I entitled to a copy of my appraisal?

Yes. Under the ECOA valuation rule at 12 CFR 1002.14, your lender must provide copies of all appraisals and other written valuations developed in connection with your application, promptly upon completion or at least three business days before consummation, whichever comes first.

Can I request a reconsideration of value after closing?

No. A borrower-initiated reconsideration of value has to be requested before the loan closes. Once the loan funds, the opportunity to challenge the valuation through that process is gone.

What are my options if the appraisal stays low?

You can renegotiate the price with the seller, cover the difference between the appraised value and the contract price, cancel the contract if you have an appraisal contingency, or restructure the financing around the appraised value. Which option fits depends on your contract terms and your loan program.

About Travis Buis

Travis Buis is a loan officer with Elite Home Lending serving Myrtle Beach and the Grand Strand, working with buyers and homeowners across Horry and Georgetown counties. Valuation questions come up constantly in a market built on condos, new construction, and properties whose worth changes block by block toward the water. He’d rather tell you what the appraisal is likely to do before you write the offer than explain it afterward. Get in touch.

Travis Buis, NMLS #1711446. Elite Home Lending, LLC — NMLS #2788023. Equal Housing Opportunity.

This article is for educational purposes only and is not a commitment to lend or an offer of credit. Program terms, rates, and eligibility standards are set by lenders, investors, and agencies and are subject to change without notice. Loan approval is subject to underwriting, credit approval, and property eligibility. Calculator results are estimates only. Nothing here is tax or legal advice — consult your CPA or attorney for your situation.