Low Appraisal in Washington: What Buyers and Sellers Can Do (2026)

Short answer: A low appraisal doesn’t end a sale. It starts a negotiation. Because the buyer’s lender is lending against the home, a value below the contract price usually means the gap has to be dealt with before closing: the seller lowers the price, the buyer brings more cash, the two split it, the lender is asked to reconsider the value, or the buyer cancels if the purchase agreement allows it. Which of those is open to you depends on the wording of your contract and on deadlines that are often only a few days long. Here is how each option works in Washington, and what buyers and sellers can each do.

First: get the appraisal and read it

For a loan secured by a first lien on a home, federal rules require the lender to give the buyer a copy of each appraisal promptly once it’s done, or three business days before closing, whichever comes first (12 CFR 1002.14). The buyer can waive that timing and take the copy at or before closing, and if the loan never closes the lender still has to send copies within 30 days. If you’re the buyer and haven’t seen it, the CFPB’s advice is simple: ask your lender for it.

Lenders aren’t allowed to interfere with an appraiser’s judgment, so the useful question isn’t whether you can talk the number up. It’s whether the report has errors or missed sales. Check the facts first: square footage, bedroom and bathroom count, lot size, garage, any finished basement or accessory unit, and whether the comparable sales are really comparable in size, condition and location.

The five ways a low appraisal gets resolved

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Sources: CFPB; OCC HelpWithMyBank.gov; Fannie Mae Selling Guide B4-1.3-12. Contract terms vary; this is a summary, not legal advice.

How a reconsideration of value works

A reconsideration of value, or ROV, is a request for the appraiser to look again at the conclusions in the report based on information that wasn’t in it. Only the lender can send that request to the appraiser, so the buyer goes through the loan officer. The OCC says the lender can ask the appraiser to consider additional comparable sales, explain how they reached the value, and fix factual errors such as square footage or bedroom count. The lender may also order a second appraisal, but it doesn’t have to, and it should tell the buyer up front who pays for one.

For loans sold to Fannie Mae, the lender has to have a written borrower-initiated ROV process and must explain it when the appraisal is delivered. Fannie Mae allows one borrower-initiated ROV per appraisal, so it’s worth doing carefully once. The request has to include:

• The borrower’s name, the property address, the appraisal’s effective date, the appraiser’s name and the date of the request.
• The specific parts of the report you believe are unsupported, inaccurate or deficient.
• Any additional data or comparable sales, no more than five, with their sources (for example, the MLS number).
• An explanation of why the new information supports the request.

The strongest requests are narrow: a measurable factual error, or recent closed sales that are closer to the home than the ones used. A list of upgrades the appraiser already saw usually isn’t enough on its own. For how a review can affect your timeline, see how long closing takes after an appraisal.

If you’re the seller

• You can’t file the ROV yourself, but you can supply what goes in it. Ask your agent for closed sales that fit better than the appraiser’s choices, plus a list of factual errors, and pass them to the buyer’s agent.
• Know what a new buyer’s lender would see. If the buyer cancels and you relist, the next buyer’s appraiser will be working from the same closed sales. A price that didn’t appraise once may not appraise the second time either. Our article on price drops this fall covers how to reset a price without chasing the market down.
• Look at the whole offer, not just the price. A small price cut that keeps a ready buyer on schedule can net more than starting over, after another round of showings and carrying costs. Get a written net sheet for each version before you decide.

If you’re the buyer

• Read your contingency deadlines today. Your purchase agreement and any financing or appraisal addendum decide whether a low appraisal lets you cancel and recover your earnest money, and by when you have to give notice. Missing a deadline can change your options. Our guide to contingencies explains the common types.
• Don’t assume you have to cover the gap. The CFPB notes that the appraisal is strong evidence the price was above market value and suggests using it to ask for a reduction. If the seller won’t move, it suggests you may want to cancel, and that you consider talking to an attorney about your options.
• Understand what’s at stake with earnest money. Under RCW 64.04.005, if a purchase agreement makes forfeiting earnest money the seller’s only remedy when a buyer fails to close without legal excuse, that amount can’t be more than 5% of the price. Larger amounts aren’t banned outright, but they’re judged under ordinary contract law instead. More in our earnest money guide.

Where prices are running ahead of list

An appraisal gap is most likely when a home sells for more than buyers were paying for similar homes a few months earlier. Redfin’s September 2026 numbers show how often that is happening in the cities we work in.

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Redfin city housing market pages, September 2026, checked October 30, 2026. Changes are in percentage points versus September 2025. Sale-to-list is the average ratio of sale price to final list price.

In September 2026 the average sale-to-list ratio was below 100% in all ten cities, and the share selling above list ran from 7.8% in Redmond to 31.5% in Everett. That doesn’t predict any single appraisal. It does tell you where to be more careful: in cities where more homes are going over list, an offer well above asking is more likely to get ahead of the closed sales an appraiser can use.

FAQ

What happens if the appraisal comes in lower than the sale price?

Because the buyer's lender is lending against the home, a value below the price usually means the gap has to be dealt with before closing. The usual paths are a price reduction by the seller, the buyer covering the difference in cash, a split, a reconsideration of value through the lender, or cancelling if the purchase agreement allows it. The CFPB calls buying a home for more than its appraised value very risky.

Can a seller challenge the buyer's appraisal?

Not directly. Only the buyer's lender can ask the appraiser to reconsider, and Fannie Mae's process is started by the borrower. What a seller can do is hand comparable sales and a list of factual errors to the buyer's side, so the buyer can include them in a reconsideration request.

How many times can you ask for a reconsideration of value?

For loans sold to Fannie Mae, one borrower-initiated reconsideration of value is allowed per appraisal. The request can include up to five additional comparable sales, with data sources such as the MLS number, and has to explain why the new information supports a different value.

When does the buyer get a copy of the appraisal?

For a first-lien loan on a dwelling, federal rules (12 CFR 1002.14) require the lender to provide a copy promptly upon completion or three business days before closing, whichever is earlier. The buyer can waive that timing, and the waiver itself must be given at least three business days before closing in most cases.

Does the buyer lose earnest money if they walk away after a low appraisal?

It depends on the purchase agreement. If the contract has an appraisal or financing contingency that covers the situation and the buyer follows its notice deadlines, the buyer may be able to cancel and recover the deposit. If not, the deposit can be at risk. Under RCW 64.04.005, when forfeiting earnest money is the seller's only remedy, the amount can't exceed 5% of the price. Read your own contract with your agent, and with an attorney if needed.

Talk it through with a local agent

If your appraisal just came in short, the next few days matter. Peter Kim and Odigo Real Estate Club can pull the closed sales, check the report for errors and lay out what each option nets you, with 25+ years combined experience, 593+ closings, and 122 five-star Zillow reviews. See our home selling services or request a property valuation before you price.

Odigo Real Estate Club · REAL Brokerage, WA #112064 · 16108 Ash Way, Suite 201, Lynnwood, WA 98087 · (425) 409-3823 · Mon–Sat 9 AM–6 PM, closed Sunday

Sources

• Consumer Financial Protection Bureau, My appraisal is less than the sale price. What does that mean for me? (get a copy; ask the seller to reduce the price; cancelling may carry costs under your contract), https://www.consumerfinance.gov/ask-cfpb/my-appraisal-is-less-than-the-sale-price-what-does-that-mean-for-me-en-2007/ , accessed Oct 30, 2026.
• Office of the Comptroller of the Currency, HelpWithMyBank.gov, What is a Reconsideration of Value (ROV) and who can request one? (only the lender may request an ROV from the appraiser), https://www.helpwithmybank.gov/help-topics/mortgages-home-equity/appraisals/rov.html , accessed Oct 30, 2026.
• Office of the Comptroller of the Currency, HelpWithMyBank.gov, I disagree with the value in the appraisal or evaluation that my lender ordered. What can I do? (additional comparables, explanation, factual corrections; second appraisal permitted but not required), https://helpwithmybank.gov/help-topics/mortgages-home-equity/appraisals/appraisal-disagree-actions.html , accessed Oct 30, 2026.
• Electronic Code of Federal Regulations, 12 CFR 1002.14, Rules on providing appraisals and other valuations (copy promptly on completion or three business days before consummation, whichever is earlier; waiver; 30 days if no loan), https://www.ecfr.gov/current/title-12/chapter-X/part-1002/subpart-A/section-1002.14 , accessed Oct 30, 2026.
• Fannie Mae Selling Guide, B4-1.3-12, Appraisal Quality Matters (borrower-initiated reconsideration of value: one per appraisal, up to five comparables, required contents), https://selling-guide.fanniemae.com/sel/b4-1.3-12/appraisal-quality-matters , accessed Oct 30, 2026.
• Fannie Mae, Reconsideration of Value (ROV) (maximum of one borrower ROV per appraisal report), https://singlefamily.fanniemae.com/initiative-updates/reconsideration-value-rov , accessed Oct 30, 2026.
• Washington State Legislature, RCW 64.04.005 (earnest money or liquidated damages as the seller’s sole remedy; 5% of the purchase price limit), https://app.leg.wa.gov/RCW/default.aspx?cite=64.04.005 , accessed Oct 30, 2026.
• Redfin, Lynnwood WA housing market (sale-to-list price, homes sold above list price and homes with price drops for September 2026), https://www.redfin.com/city/10421/WA/Lynnwood/housing-market , accessed Oct 30, 2026.
• Redfin, Mukilteo WA housing market (sale-to-list price, homes sold above list price and homes with price drops for September 2026), https://www.redfin.com/city/12197/WA/Mukilteo/housing-market , accessed Oct 30, 2026.
• Redfin, Mill Creek WA housing market (sale-to-list price, homes sold above list price and homes with price drops for September 2026), https://www.redfin.com/city/11701/WA/Mill-Creek/housing-market , accessed Oct 30, 2026.
• Redfin, Edmonds WA housing market (sale-to-list price, homes sold above list price and homes with price drops for September 2026), https://www.redfin.com/city/5357/WA/Edmonds/housing-market , accessed Oct 30, 2026.
• Redfin, Everett WA housing market (sale-to-list price, homes sold above list price and homes with price drops for September 2026), https://www.redfin.com/city/5832/WA/Everett/housing-market , accessed Oct 30, 2026.
• Redfin, Bothell WA housing market (sale-to-list price, homes sold above list price and homes with price drops for September 2026), https://www.redfin.com/city/29439/WA/Bothell/housing-market , accessed Oct 30, 2026.
• Redfin, Kirkland WA housing market (sale-to-list price, homes sold above list price and homes with price drops for September 2026), https://www.redfin.com/city/9148/WA/Kirkland/housing-market , accessed Oct 30, 2026.
• Redfin, Redmond WA housing market (sale-to-list price, homes sold above list price and homes with price drops for September 2026), https://www.redfin.com/city/14913/WA/Redmond/housing-market , accessed Oct 30, 2026.
• Redfin, Bellevue WA housing market (sale-to-list price, homes sold above list price and homes with price drops for September 2026), https://www.redfin.com/city/1387/WA/Bellevue/housing-market , accessed Oct 30, 2026.
• Redfin, Issaquah WA housing market (sale-to-list price, homes sold above list price and homes with price drops for September 2026), https://www.redfin.com/city/8645/WA/Issaquah/housing-market , accessed Oct 30, 2026.

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