Quick answer: A low appraisal usually shrinks the loan rather than the price. Lenders generally base the loan on the lower of the sales price or the appraised value, so a buyer may need more cash at closing. Whether you can cancel depends on whether the contract has an appraisal contingency or financing contingency and whether its deadlines have passed. For Fannie Mae loans, a borrower may request one reconsideration of value, but only through the lender. Involve a Florida real estate attorney early, because the choice between cancelling, renegotiating and proceeding has legal and financial consequences.
A low appraisal is one of the most stressful moments in a Florida purchase, because the number on the report can change the financing, the cash you need and your options under the contract all at once. Most of the confusion comes from three different things: the contract, the loan and the appraisal. This article explains how each one works and where the deadlines sit, so you can ask your attorney and lender the right questions quickly.
Why the loan shrinks
For a purchase, Fannie Mae measures loan-to-value using the lower of the sales price or the current appraised value (Selling Guide B2-1.2-01). If the appraisal comes in below the price, the lender calculates the loan on the lower figure. Here is a hypothetical example, not a quote. The price is $400,000, the appraisal is $380,000, and the loan is 80 percent. The lender bases the loan on $380,000, so the mortgage is $304,000 instead of $320,000. The cash you need at closing rises from $80,000 to $96,000, before closing costs.
The contract: financing and appraisal contingencies
A financing contingency does not automatically include an appraisal contingency. The Florida Realtors' explanation of its financing contingency describes Addendum F, which adds an appraisal contingency with a negotiated deadline. If the appraisal comes in below the amount stated in Addendum F, the buyer may be able to cancel without penalty, or accept the low appraisal and proceed, according to Florida Realtors' July 2024 explanation. Under the financing contingency, the lender must be satisfied with the appraisal or another valuation, and a low appraisal returned before the loan approval deadline may allow cancellation. Loan approval and closing deadlines are separate, and extending the closing date does not automatically extend loan approval. FHA and VA riders have their own terms: if the appraised value falls below a stated amount, the buyer need not complete the purchase and does not lose the deposit under those riders, as Florida Realtors describes them. I have not reviewed the current form text, so read the exact paragraphs and deadlines in your contract.
Reconsideration of value
A reconsideration of value (ROV) is a request to have the appraiser look at the report again, usually because of a missing comparable or a factual error. For Fannie Mae loans, a borrower may request an ROV only through the lender. One borrower-initiated ROV is permitted per appraisal, and none may be requested after closing. The lender must validate the request before it goes to the appraiser and decides whether to accept the appraiser's conclusions (Selling Guide B4-1.3-12). Fannie Mae's SEL-2025-07, dated September 3, 2025, moved the ROV disclosure to delivery of the appraisal report and requires documentation of the outcome. The lender is your point of contact for this process.
Your right to the appraisal
Under the federal rule for appraisal copies, a loan applicant must receive a copy of all appraisals promptly upon completion, or three business days before closing, whichever is earlier (12 CFR 1002.14(a)(1)). Ask your lender for the report as soon as it is available. Reading the report is how you find errors that may support an ROV request.
Pressure on an appraiser is not a strategy
No one involved in the loan may try to make the value reach a particular result through coercion, extortion, inducement, bribery or intimidation (12 CFR 1026.42(c)(1)). Florida also disciplines appraisers who accept an assignment contingent on a predetermined result or who take a fee contingent on the value reached (s. 475.624(17)). Route questions and challenges through the lender, and keep communications businesslike.
Options buyers and sellers discuss
A consumer real estate blog published on June 25, 2026 lists several common responses to a low appraisal: lower the price, split the difference, the buyer pays the gap in cash, request a reconsideration of value, obtain a second appraisal, use a different lender, or cancel if the contract allows it. Each option has contract and lender consequences. I do not tell buyers or sellers which to choose. Your choice depends on the contract's deadlines, your lender's requirements and your budget, and it should be made with an attorney who reviews the actual documents.
Local rules
I did not identify any St. Lucie County, Port St. Lucie or Palm Beach County appraisal rule. The contract, the lender and the state and federal rules described above control. FHA and VA reconsideration rules differ from Fannie Mae's, and I did not confirm their current requirements, so ask your lender which process applies to your loan.
Keep the claims accurate
I will not promise an appraisal result, guarantee a value or call a property "appraisal-proof." Florida's real estate advertising rules prohibit false or misleading claims (s. 475.25). What I can do is help you read the contract's deadlines, organize the appraisal and the lender's answers, and bring in the right professional before a deadline passes.
Questions buyers ask about low appraisals
Can I cancel if the appraisal comes in low?
Possibly. It depends on whether the contract includes an Addendum F appraisal contingency or a financing contingency, and whether the relevant deadlines have passed. Read the exact paragraphs with your attorney before the deadline.
Can I ask for another look at the value?
For Fannie Mae loans, yes, but only through the lender. One borrower-initiated reconsideration of value is permitted per appraisal, and none may be requested after closing. Ask your lender about the process for your loan type.
Why does the loan get smaller?
Because the lender uses the lower of the sales price or the appraised value to measure loan-to-value (Fannie Mae B2-1.2-01). A lower appraisal therefore lowers the loan amount at the same loan-to-value ratio, and the difference generally must be covered in cash or by another arrangement the contract and lender allow.
Can I get a copy of the appraisal?
Yes. Under 12 CFR 1002.14, you are entitled to a copy promptly upon completion or three business days before closing, whichever is earlier. Ask your lender for it as soon as it is available.
What can the seller do after a low appraisal?
A consumer blog lists options such as lowering the price, splitting the difference, or requesting a reconsideration of value. Each option has contract and lender consequences, so the choice should be made with an attorney and the lender involved.
Talk with William. Have a low appraisal on a Florida contract? Send me the contract, the appraisal and the lender's deadlines. I will help you organize the timeline and the questions for your attorney and lender before any deadline passes. Call or text (772) 800-2274 or send a message.
General information, not legal, lending, appraisal or financial advice. I am a licensed real estate agent, not a lender or appraiser. Whether to cancel, renegotiate or proceed is a decision for the buyer and seller with an attorney and a lender. Forms, deadlines and loan rules change, so confirm them against your contract and loan documents. William Merchant, REALTOR®, RE/MAX Gold. Each RE/MAX office is independently owned and operated. Equal Housing Opportunity.
Sources
- Florida Realtors: Financing contingency FAQs (July 29, 2024)
- Fannie Mae Selling Guide B2-1.2-01: Loan-to-value ratios
- Fannie Mae Selling Guide B4-1.3-12: Appraisal quality matters
- Fannie Mae: Reconsideration of value initiative
- Fannie Mae: SEL-2025-07 Selling Guide updates (Sept. 3, 2025)
- 12 CFR 1002.14, Rules on providing appraisals and other valuations
- 12 CFR 1026.42, Valuation independence
- Florida Statutes 475.624, Appraiser discipline (2025)
- Redfin: Can you still buy a house after a low appraisal? (June 25, 2026, secondary)
- Florida Statutes 475.25, Discipline of real estate licensees (2025)
- Florida Statutes 454.23, Unlicensed practice of law (2025)
