What happens when a home does not appraise in Richmond, VA?
Buying
A low appraisal usually isn't the end of the deal. The lender will generally base the loan on the lower appraised value, so there's a gap to solve. First, make sure the appraisal makes sense. Then the seller may come down in price, the buyer may cover some of the gap, or both sides may share it.
October 25, 2026
What Happens When a Home Does Not Appraise in Richmond, VA?
Curt Reichstetter
A low appraisal usually isn't the end of the deal. The lender will generally base the loan on the lower appraised value, so there's a gap to solve. First, make sure the appraisal makes sense. Then the seller may come down in price, the buyer may cover some of the gap, or both sides may share it. Sometimes there is no path forward, but a low appraisal is not usually the end of the conversation.
What This Covers
Frequently Asked Questions
Can a buyer or seller challenge a low appraisal?
Sometimes. There may be a legitimate reason to ask the lender to take another look, such as a missed comparable sale, incorrect square footage, or an important feature the appraiser didn't consider. There has to be something real that was missed.
Does the seller have to lower the price if the appraisal is low?
No. Lowering the price to the appraised value is the most straightforward answer, but the seller decides whether working with this buyer gets them to closing more reliably than putting the home back on the market. If the next buyer needs financing, the appraisal may become the issue again.
Can a buyer walk away if the appraisal comes in low?
It depends on how the offer was written. Depending on the contract, the deadlines and each side's rights, the buyer may have a way out, and there may still be room for a conversation. The details matter, so review the contract with someone who understands it.
How can a buyer prepare for a possible low appraisal?
Before writing a strong offer, look at recent sales and decide what you are comfortable doing if the appraisal is low. Covering a gap with cash is real money on top of your down payment and closing costs, so it is worth talking through ahead of time.
Does a low FHA appraisal matter to a seller?
It can. A low FHA appraisal can sometimes still matter if the first buyer doesn't close and the seller finds another FHA buyer. Before walking away from an FHA contract over a low appraisal, have the lender explain what that could mean for you.
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