What happens if my conventional appraisal comes in low?
Three options: 1) renegotiate the contract price down to the appraised value; 2) bring cash to cover the gap above the appraised value; 3) request a Reconsideration of Value (ROV) with new supporting comps. The contract usually contains an appraisal contingency that lets the buyer walk if they can't bridge the gap.
What this actually means.
Conventional doesn't have FHA's amendatory clause built into the contract automatically — the appraisal contingency is a standard contract provision. If the value comes in low, the buyer can: renegotiate (most common in soft markets), bring cash (if the file allows), pursue ROV with the appraiser (requires meaningfully better comps), or walk away under the contract's appraisal contingency. Subject to contract terms.
Where this can move.
Property condition, comparable sales availability, appraisal waiver eligibility, and Reconsideration of Value can change the appraised value.
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More conventional questions on Appraisal.
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.