How to Challenge a Low Appraisal: A Homeowner's Guide

31 August 2025

So, you’ve decided to sell your home or refinance your mortgage, and here comes the dreaded home appraisal. Your hopes are high, your house looks fantastic, and then—bam! The appraisal comes in much lower than expected. Disappointed? Frustrated? You’re not alone.

Low appraisals happen more often than homeowners realize, and they can throw a serious wrench in your real estate plans. But here’s the thing: You don’t have to accept it without a fight. There are ways to challenge a low appraisal and potentially get it adjusted in your favor. Let's dive into how you can do just that.

Why Do Low Appraisals Happen?

Before you jump into challenging a low appraisal, it's important to understand why it happened in the first place. Appraisers follow strict guidelines, but they’re not infallible. Here are some common reasons for a low valuation:

1. Inaccurate Comparable Sales (Comps)

Appraisers use recent sales of similar homes (comparables or "comps") to determine your home’s value. If they picked comps that don’t truly compare to your home—maybe they chose smaller homes, outdated listings, or distress sales—your value could be skewed lower than it should be.

2. Market Conditions

If the market is cooling off or shifting, it could reflect in your appraisal. A sudden downturn in sales, even if temporary, might have impacted your home’s value, even if it doesn’t feel fair.

3. Appraiser’s Experience & Knowledge of the Area

Not all appraisers are deeply familiar with your neighborhood. If your appraiser doesn’t understand unique factors that make your community more valuable than others, they might underestimate your home’s worth.

4. Undervalued Home Improvements

Did you upgrade your kitchen, replace the roof, or install energy-efficient windows? Sometimes, appraisers don’t give full credit for home improvements, especially if they don’t have records or if the upgrades aren’t obvious.

Steps to Challenge a Low Appraisal

You don’t have to accept a low valuation without question. Here’s how to challenge a low appraisal and possibly get a better result.

1. Review the Appraisal Report in Detail

First things first—get a copy of the full appraisal report. Read it carefully and look for:

- Incorrect square footage
- Missing or undervalued home upgrades
- Incorrect number of bedrooms or bathrooms
- Wrong lot size
- Outdated or inappropriate comps

Even minor errors can impact your appraisal, so go through it with a fine-tooth comb.

2. Research Your Own Comparable Sales

If you believe the appraiser used weak comps, find better ones yourself. Work with your real estate agent to pull recent sales data. Look for homes similar in size, condition, and location that sold at a higher price.

Pro Tip: If you see homes that sold after your appraisal date but show a higher trend, use them to support your case.

3. Gather Proof of Home Improvements

Appraisers don’t always get the chance to see all the upgrades that make your home stand out. If you've made significant renovations, prepare a list with receipts, before-and-after photos, and detailed descriptions. Highlight big-ticket items like:

- A remodeled kitchen or bathroom
- New roof, HVAC system, or energy-efficient windows
- Landscaping upgrades
- Finished basement or attic

Even small upgrades can add value, so don’t leave anything out.

4. Request a Reconsideration of Value (ROV)

Once you’ve identified errors or better comps, submit a Reconsideration of Value (ROV) request to your lender. In your request, include:

- A polite but firm written argument detailing why the appraisal is inaccurate
- Better comparables that justify a higher price
- Documentation of any mistakes in the report
- Proof of upgrades and renovations

Most banks have a formal process for this, so check with your lender before submitting.

5. Ask for a Second Opinion (New Appraisal)

If the reconsideration request doesn’t work and you still firmly believe the appraisal is too low, you may be able to request a second appraisal. Some lenders allow this if you provide strong reasoning, but it’s up to their discretion.

If your lender doesn’t allow a second appraisal, you can still hire an independent appraiser for a second opinion. While it won’t force the lender to change their mind, it can give you leverage if you're negotiating with a buyer or trying to refinance.

6. Negotiate with the Buyer (If Selling)

If you’re selling your home and the low appraisal threatens the deal, you have a few options:

- Ask the buyer to cover the difference – Some buyers may be willing to pay above the appraised value if they really want the home.
- Renegotiate the sale price – If the buyer won’t budge, consider adjusting the price slightly to meet somewhere in the middle.
- Challenge the appraisal – If time allows, go through the appeal process as outlined above.

The key is to communicate openly with the buyer and their agent to find a solution that works for both sides.

Preventing a Low Appraisal in the First Place

While you can’t control the appraiser’s assessment entirely, you can take steps to set yourself up for the best possible outcome.

1. Prepare Your Home Like It’s a Showing

Treat the appraisal like you would a buyer’s visit. Clean, declutter, and highlight the best features of your home. A well-presented home can leave a lasting impression.

2. Provide a List of Upgrades to the Appraiser

Before the appraiser visits, prepare a detailed list of all major upgrades and renovations. Highlight high-value improvements that could affect the appraisal.

3. Accompany the Appraiser (If Allowed)

While you can’t outright influence the appraiser, you can be available to answer questions and point out features they might otherwise miss, such as a new HVAC system, solar panels, or premium flooring.

4. Work with a Local Lender

Local lenders often hire local appraisers who understand the neighborhood better than national firms. If possible, work with a lender that has a strong presence in your area.

Final Thoughts

A low appraisal doesn’t have to be the end of your real estate dreams. By carefully reviewing the report, gathering better comps, and submitting a strong case for an adjustment, you can increase your chances of getting a fair valuation.

Remember, appraisers are human too—they make mistakes. It’s your job to catch those mistakes and advocate for your home's true value. Don’t shy away from the challenge; embrace it with the right information and strategy!