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A low home appraisal can stall mortgage approval

What happens when a buyer and seller agree on a price, but then the lender’s appraisal comes back lower than the agreed-upon amount? Until the financing is approved, the deal can fall through. This is why you see the words “Contract Pending” on the agent’s yard sign.

Approximately 10 percent of real estate agents report on a monthly basis that a low home appraisal negatively impacted a sale, according to the National Association of Realtors®.

Here are some ways that sellers and buyers can protect themselves from a low appraisal.


  1. Before you list your property, pay to have an appraisal done. In a seller’s market where some buyers are making offers significantly above the listing price, sellers need to understand how critical the appraisal is to closing the deal.

  2. Do your homework and use a qualified appraiser who has a membership designation such as SRA or MAI from the Appraisal Institute.

  3. Be sure the appraiser is comparing your home to the latest data about homes just sold or under contract in your area. Also, highlight any improvements to your home or landscaping that may positively affect the selling price.


  1. Ask your lender to choose one name among 2 or 3 qualified appraisers that you recommend.

  2. Meet with the appraiser when the inspection is being done, and ask questions about the process.

  3. If you receive a low appraisal, follow up and ask questions. The appraiser or supervisor may have overlooked the newest information.

I anticipate this happening more in the future. For information on pricing your home, or buy strategically to do all possible to prevent appraisal woes, please call, email, or text me to talk more about it.


Five Star award Winner 2011- 2018 honoring the top 7% of real estate professionals in Oregon. 

Rachel Sheller, Principal Broker, Realtor, CRS, ABR, GRI, SRES,  Diversity Specialist-HOWNW, Earth Advantage Broker, MASTERS CIRCLE, CSA-Certified Staging Agent, Oregon First, Washington First

Direct 503.380.9634, Email-

View a current list of ALL available Houses on the market go to my website

Licensed in the State of Oregon

My business is referral based. If you’ve enjoyed my service, please refer me!

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