Florida Buyer FAQ: What Happens If the Appraisal Comes In Low?
Florida Buyer FAQ: What Happens If the Appraisal Comes In Low?
You’re under contract on a Florida home. Everything’s moving smoothly.
Then your lender sends the appraisal—and it’s lower than the purchase price.
Now what?
Here’s what you need to know.
Why It Matters
Lenders base your mortgage amount on the appraised value, not the contract price.
If appraisal is low, you may face:
- Bigger down payment
- Delays
- Contract cancellation
Option 1: Renegotiate
Ask the seller to lower the price to the appraised value.
This keeps financing intact and avoids a larger cash requirement.
Often the most common outcome in Florida deals.
Option 2: Pay the Difference
Cover the gap between appraisal and contract price out of pocket.
Example: Offer = $410K, Appraisal = $400K
- Pay the extra $10K at closing
Useful if you love the home and can afford the difference.
Option 3: Dispute the Appraisal
Ask your lender to review comps and request a reconsideration.
You’ll need:
- Recent, higher-priced comparable sales
- Justification for why the appraisal missed the mark
Results aren’t guaranteed—but it’s worth a try.
Option 4: Cancel the Deal
If you included an appraisal contingency, you can back out and get your deposit refunded.
Talk with your agent and lender before walking away.
Can I Switch Lenders?
Yes, but be cautious:
- Delays your timeline
- New appraisal may not differ much
Only useful if your current lender is uncooperative.
Florida-Specific Tip
In competitive Florida markets, some buyers waive appraisal contingencies.
Only do this if you can absorb a low result financially.
Final Thought
A low appraisal isn’t the end. It’s a fork in the road.
📞 Call Michael Renick at 941.400.8735 to explore your options and keep your Florida dream home within reach.
Florida Home Appraisals: What Buyers Need to Know
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