What happens if a Rochester home appraises below my offer?

Start with the report and the loan

A low appraisal means the appraiser's value opinion is below the agreed purchase price. It does not automatically cancel the sale or force the seller to reduce the price. Ask the lender how the valuation changes your proposed loan and cash requirement. Your purchase contract determines what options and deadlines may be available to you.

Review the evidence before reacting

Request the appraisal and ask the lender about its process for reviewing factual errors or relevant comparable sales. Identify specific issues, such as an incorrect property detail, rather than treating the contract price as proof of value. A review can result in the original opinion being upheld. Avoid committing to extra cash while you are still trying to understand the figures.

Compare the possible paths

Depending on the contract and financing, discussions may involve a price reduction, additional buyer cash, a combination of the two, or a permitted termination. Neither party is guaranteed the other's agreement. Ask your attorney about any appraisal contingency, financing contingency or gap commitment you signed. Ask your lender to calculate the actual revised cash to close; the price-to-value difference alone is not a complete financing worksheet.

Set your limit before making an offer

Write down the maximum cash you are comfortable contributing while preserving reserves. Ask how a lower valuation would affect that plan before you offer. Recent closed comparable sales can inform the conversation, but no agent can guarantee an appraised value. For a Greater Rochester property, bring the address, proposed terms and your financing assumptions to Ellison Realty so the questions stay tied to the actual home.

Further reading

• CFPB: Understanding different property valuations