A lender will usually reject a loan application if the appraisal of the property you are selling comes back lower than the asking price. But there are ways to challenge a low-ball appraisal:


What you should do:
Get a copy of the appraiser’s report. You can successfully argue to raise the estimated value if you show that the report overlooks a valuable feature of the home or failed to consider the recent sale of comparable property for a higher price.

Take your case to the loan representative. The lender may be able to override the estimate or order a new report from a different appraiser.

If the appraisal comes in low again, there’s not much more you can do to change their mind.
This may not be an answer you want to hear but you might want to try to renegotiate. If you can come to an agreement for a lower figure, it may be worth your while to avoid the time and cost required to cancel the sale and put the house back on the market. And if the buyer can actually increase their down payment some, the lender may be willing to overlook a low appraisal.

Finally, ask the lender, or get the buyer to ask their lender, for the names of appraisers they know, trust and have on their list of approved appraisers.

You also can check with one of several national appraisal organizations, like the American Society of Home Inspectors (ASHI) for names of local appraisers who are members in good standing. Look for an appraiser who can do it in a timely manner and who has experience in the area you want to buy. This can help speed things along, and get you a better chance of an accurate appraisal.