What happens if the appraisal comes in low?

If the appraisal comes in below the agreed purchase price, it creates what is known as an appraisal gap, meaning the lender will base the loan on the lower appraised value rather than the contract price. At that point, the buyer and seller typically need to renegotiate to keep the transaction moving forward. In the Sarasota real estate market, several solutions are commonly used. The buyer may choose to increase their down payment to cover the difference between the appraised value and the contract price. In other cases, the seller may agree to reduce the purchase price to align with the appraised value. Sometimes both parties compromise and meet somewhere in the middle to preserve the deal. This situation occasionally occurs when markets move quickly, especially in areas like Lakewood Ranch, Palmer Ranch, or Siesta Key, where prices can shift rapidly and recent comparable sales may not fully reflect current buyer demand. Successful negotiations usually focus on keeping both sides committed to closing while addressing the lender’s valuation requirements.