You’ve found a property, run the numbers, and lined up your financing. Then the appraisal comes back low. Now what? Low appraisals happen. But they don’t have to stop your deal. Here’s what you need to know—and the steps to keep your project moving forward.
Why Does a Low Appraisal Matter?
Lenders base how much they’ll fund on the appraised value. If the appraisal is lower than expected, your loan-to-value (LTV) ratio shifts—and you could face a funding gap. That means you might need more cash upfront or risk losing your loan approval.
What Can You Do?
1. Review the appraisal carefully.
Look for errors or overlooked comps that don’t reflect your market or property condition. If you spot mistakes, you can challenge it.
2. Provide additional information.
Share repair estimates or plans to prove the property’s potential value after the flip. A strong rehab plan can support a higher valuation.
3. Negotiate with your lender.
Sometimes lenders can adjust terms or approve higher funding if your plan and experience back it up.
4. Consider a second appraisal.
If you suspect the first one missed the mark, a second opinion can confirm the value—or reveal a better number.
5. Adjust your offer or budget.
If the appraisal won’t budge, you may need to lower your purchase price or increase your down payment to cover the gap.
How Crebrid Helps You Navigate This
We know fix-and-flip deals move fast, and surprises like low appraisals can throw off your timeline. That’s why we focus on clear communication and flexible funding solutions that keep your deal on track. With Crebrid, you get offers fast—and support to adjust when the unexpected happens.
