Buying a brand-new home is an exciting milestone—but when the appraisal comes in lower than expected, it can feel like a major setback. If you’re a first-time home buyer, purchasing a pre-construction home, or a realtor guiding your clients through the process, here’s what you need to know—and how to handle it confidently.
Why Do Appraisals Come in Low?
In today’s market, it’s not uncommon for new builds to appraise below the original purchase price. Appraisals are based on recent comparable sales (comps), which may not fully reflect the upgraded finishes, layout changes, or market appreciation since the pre-construction agreement was signed. Sometimes, rapid shifts in the local market or delayed builder timelines can impact valuation, too.
Don’t Panic—There Are Solutions
A lower-than-expected appraisal doesn’t mean the deal is dead. It simply means we need to get creative and strategic. Here are some common solutions:
- Negotiate with the Builder Many builders are open to price adjustments or offering incentives, especially when the appraisal is just slightly below the purchase price. Having a skilled mortgage professional advocate on your behalf can make a big difference.
- Cover the Gap Strategically If negotiations don’t result in a lower price, you may need to bridge the gap between the appraised value and the purchase price. This can often be done with gifted funds, savings, or a short-term secondary loan.
- Request a Second Appraisal Sometimes, the initial appraisal misses key features or uses outdated comps. In this case, you can request a reconsideration of value or commission a second appraisal with a new lender.
Work with Experts Who Know the Process
The best way to navigate a lower appraisal is to work with a mortgage broker who understands new builds and has access to a wide range of lenders. At Spark Mortgages, we specialize in helping first-time buyers and realtors turn roadblocks into opportunities.
We don’t just process paperwork—we provide clarity, communication, and customized solutions every step of the way.
Buying a new build? Don’t let a low appraisal shake your confidence. Let’s talk through your options and get you moving toward your dream home.
