You may have seen the headlines lately:“Home prices are dropping.”“Denver is leading the decline.”“More than half of major metros saw year-over-year price drops…
Sellers: The Truth About Appraisals: What Sellers Need to Know
Dated: June 17 2025
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You’ve accepted an offer—yay! But now it’s time for one of the most nerve-wracking parts of the process (for both sides): the appraisal.
🧠 What Is an Appraisal Anyway?
An appraisal is an unbiased professional opinion of a home’s value—ordered by the buyer’s lender to make sure the home is worth the purchase price. It’s not the same as a home inspection. It’s about value, not condition (although condition plays a role).
📉 Why Sellers Worry About It:
- Because if the appraisal comes in lower than the contract price, the deal can get rocky.
- The buyer’s lender won’t loan more than what the home is worth on paper. And suddenly… renegotiation is back on the table.
⚠️ What Can Trigger a Low Appraisal?
- You accepted a price higher than recent neighborhood sales
- The appraiser couldn’t find good comps
- The upgrades in your home aren’t obvious or documented
- The market is shifting quickly
- The appraiser is unfamiliar with the neighborhood (yep, it happens)
💡 What Sellers Can Do to Help
- Price strategically from the start.
- Make sure your agent meets the appraiser. I always prep a packet with comps, showing activity, and a list of upgrades.
- Be proactive. If we know we pushed the price, we’ll prepare buyers for a possible appraisal gap conversation up front.
🛠 What Happens if It Comes in Low?
There are a few ways forward:
- The buyer can bring cash to cover the gap
- We can renegotiate the price
- The buyer might walk away
- We can challenge the appraisal (rare, but sometimes worth trying)
This is where having a strong agent matters. I’ve navigated low appraisals more than once—and my goal is always to keep the deal moving while protecting your bottom line.
Angelica Olmsted
Angelica’s path into real estate is rooted in a life full of diverse experiences and a deep appreciation for what “home” means. Growing up as an Air Force brat meant constant moves, and later, h....
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