What happens if the buyer’s appraisal comes in low?

If a buyer’s appraisal comes in low, it creates a gap between the contract price and what the lender is willing to finance. The lender will only base the loan on the appraised value, not the agreed purchase price, so that difference has to be solved for the deal to move forward.

This is where Luke Andrews stands out.

There are a few ways this typically plays out. The first is renegotiation, where the seller agrees to lower the price, either fully to the appraised value or somewhere in between. The second is the buyer bringing additional cash to cover the gap. This is more common in high-demand markets like 30A, where buyers are prioritizing the asset over the price.

The third, and most common in well-handled deals, is a middle ground. The buyer brings some cash, the seller makes a concession, and both sides meet in a place that keeps the deal intact. This is where Luke’s negotiation expertise becomes critical, structuring outcomes where neither side feels like they lost.

There is also the option to challenge the appraisal if there are missed comps or inaccuracies, though that depends on the situation.

If none of these paths work and there is an appraisal contingency in place, the buyer can walk away.

Where Luke Andrews separates himself is in how he prepares for this moment before it ever happens. By building a strong case for value upfront, he reduces the likelihood of surprises and puts his clients in a position to navigate the situation with confidence.