Selling a House After a Low Appraisal: What to Do Next

A low appraisal can kill a deal instantly. You’ve negotiated a price, the buyer is ready, and then the appraisal comes in thousands—sometimes tens of thousands—below contract. The buyer can’t get financing, the deal collapses, and you’re back at square one.

When this happens once, it’s frustrating. When it happens twice, it’s a pattern—and it’s time to change strategies.

Why Appraisals Come in Low

Low appraisals are commonly caused by:

• Condition issues or deferred maintenance

• Limited comparable sales

• Unique or non-standard properties

• Rapid market shifts

• Over-improvements that don’t appraise dollar-for-dollar

Importantly, a low appraisal isn’t always wrong—it’s often conservative by design.

Why Relisting Often Fails

Many sellers relist hoping for a better result. The problem?

• Appraisers use the same comps

• Condition hasn’t changed

• Lenders haven’t changed guidelines

The next appraisal often comes in at the same number—or lower.

Price Reductions Aren’t Always the Answer

Lowering the price to match the appraisal may:

• Force you to accept less than you can afford

• Still not fix financing issues

• Signal weakness to buyers

If the house can’t appraise, price alone may not solve it.

Selling Without an Appraisal

Cash home buyers and real estate investors don’t rely on appraisals.

They:

• Buy homes as-is

• Evaluate based on investment fundamentals

• Skip lender requirements

• Close without appraisal contingencies

This eliminates the single point of failure that keeps killing deals.

When a Cash Sale Makes Sense

Selling to a cash buyer is often the right move when:

• Multiple deals failed due to appraisal

• Repairs required to boost value are unrealistic

• Time or financial pressure exists

• You want certainty instead of another attempt

At that point, predictability matters more than theory.

The Bottom Line

A low appraisal is the market telling you something—ignoring it usually leads to repeated failure. Chasing financed buyers after multiple low appraisals wastes time and money.

Selling your house as-is to a real estate investor removes the appraisal entirely and allows you to move forward with certainty.