How to Dispute a Low Home Appraisal

What to Do If Your Home Appraisal Comes in Low

A low home appraisal can be frustrating, especially if you’re selling your home, refinancing, or buying in a competitive market. When an appraisal comes in lower than expected, it can affect financing, negotiations, and even cause deals to fall through.

At IdaHome Appraisal, Inc., we provide accurate, professional appraisals throughout Boise, Garden City, Eagle, Nampa, Middleton, Caldwell, Horseshoe Bend, Idaho City, Donnelly, McCall, Star, Meridian, and Kuna, Idaho. If you receive a low appraisal, here’s how you can dispute it and potentially get it adjusted.

1. Understand Why the Appraisal Came in Low

A low appraisal doesn’t necessarily mean your home isn’t worth what you expected. It could be due to:

  • ✔ Incorrect or outdated comparable sales (comps) – The appraiser may have used older or less relevant comps.
  • ✔ Market shifts – If the market is cooling, recent sales might reflect lower prices.
  • ✔ Condition issues – If your home needs repairs, it could lower the appraised value.
  • ✔ Appraiser unfamiliarity with the area – In rare cases, the appraiser may not have deep knowledge of local market trends.

👉 Key Takeaway:

Before disputing an appraisal, review the report carefully and identify potential errors.

2. Review the Appraisal Report for Mistakes

Start by going through your appraisal report in detail. Look for:

  • ✔ Errors in square footage or number of bedrooms/bathrooms
  • ✔ Incorrect home upgrades or missing renovations
  • ✔ Inaccurate property condition assessments
  • ✔ Wrong or outdated comparable sales (comps)

If you spot errors, gather supporting documentation and prepare to challenge the appraisal.

👉 Key Takeaway:

Even small mistakes can impact your home’s valuation, so check for accuracy.

3. Research Better Comparable Sales

Appraisers use recent home sales (comps) to determine your home’s value. If your appraiser used outdated or lower-value comps, find stronger ones that support a higher valuation.

  • ✔ Look for recent sales (last 3-6 months) in your neighborhood.
  • ✔ Compare homes with similar size, age, and upgrades.
  • ✔ Check if nearby homes sold for higher prices than what the appraiser used.

Once you’ve identified better comps, provide them to your lender or appraisal management company for review.

👉 Key Takeaway:

Stronger comps can support a dispute and lead to an adjusted appraisal.

4. Request a Reconsideration of Value (ROV)

If you find valid reasons to dispute the appraisal, ask for a Reconsideration of Value (ROV) through your lender. Here’s how:

  1. Write a formal request outlining the issues with the appraisal.
  2. Provide supporting evidence, such as better comps, correction of errors, and photos of upgrades.
  3. Submit the request to the lender, who will review it and possibly request a revised appraisal.

While an ROV doesn’t guarantee a higher valuation, it gives you a chance to present better data and correct mistakes.

👉 Key Takeaway:

A well-documented appeal increases your chances of a higher appraisal adjustment.

5. Consider a Second Appraisal

If the ROV process doesn’t work, you may have the option to:

  • ✔ Request a new appraisal with a different appraiser.
  • ✔ Negotiate with the buyer to split the cost of a second opinion.
  • ✔ Switch lenders (if applicable) to get a new appraisal entirely.

Note: A second appraisal isn’t always possible, but in some cases, lenders may allow it if there are clear issues with the first valuation.

👉 Key Takeaway:

A second appraisal can provide a fresh perspective and a potentially higher valuation.

6. Negotiate Based on the Low Appraisal

If the appraisal remains low, you still have options:

  • ✔ Renegotiate the sale price – Buyers and sellers can agree to adjust the deal.
  • ✔ Increase the down payment – Buyers can put more cash down to cover the appraisal gap.
  • ✔ Find alternative financing options – Some lenders offer solutions for appraisal discrepancies.

A low appraisal isn’t always the end of the deal, but it requires flexibility and negotiation.

Final Thoughts

A low home appraisal can be frustrating, but it’s not always final. By reviewing the report, gathering better comps, and requesting a reconsideration of value, you may be able to increase your home’s valuation.

If you need a professional home appraisal in Boise, Garden City, Eagle, Nampa, Middleton, Caldwell, Horseshoe Bend, Idaho City, Donnelly, McCall, Star, Meridian, or Kuna, Idaho, contact IdaHome Appraisal, Inc. today!

📞 Contact us today for a home appraisal you can trust!

Meet the Author

Josh Darrow ~ Headshot

Joshua L. Darrow is a seasoned Certified Residential Appraiser with 20 years of experience in the appraisal industry. He specializes in providing comprehensive residential appraisals for various purposes, including mortgage/lending for conventional and FHA-insured loans, estate appraisals for tax purposes, divorce appraisals, partition action appraisals, market value appraisals, pre-listing appraisals, for sale by owner appraisals, tax appeal appraisals, and measurement services. Known for his commitment to integrity, Joshua delivers non-biased, objective appraisal reports with the utmost professionalism and accuracy.