Let's Ask Katie - June 2026

Let’s Ask Katie!

Expert Advice for all your Real Estate questions from Katie Machoskie

Hi Katie

We are in a panic.  The house we are in escrow on did not appraise at the sales price. What can we do? 

AJ and Allie, Newport Beach

Hi AJ  and Allie,  

When the home you’re buying doesn’t appraise for the agreed purchase price, it can feel like a curveball—but it’s not the end of the ballgame. An appraisal gap simply means the lender’s valuation came in lower than the offer, and there are steps you can take to keep your dream home within reach.

Submitting a Reconsideration of Value (ROV) Request
First, review the appraisal report closely. Look for discrepancies or overlooked points—did the appraiser miss comparable sales or undervalue a remodel or unique features of the property you're buying? If you spot potential errors, you can submit a Reconsideration of Value (ROV) request. Work with your agent and loan officer to compile a compelling case with supporting evidence, such as recent sales data, neighborhood trends, or details about the property’s upgrades. Be as detailed as possible. A strong ROV can sometimes lead to an adjusted appraisal.

Other Options to Consider
If the ROV doesn’t yield the results you hoped for, you still have options. You might renegotiate with the seller to lower the price, cover the appraisal shortfall with additional cash, or explore splitting the difference. Your agent will guide you through these conversations to find a solution that works for everyone.

Remember, this situation is more common than you think, and with the right strategies, and an agent who understands how to negotiate, you can navigate it successfully and move to closing day!

Katie Machoskie is a REALTOR and Certified Real Estate Negotiator As Founder of the Machoskie & Associates team at COMPASS in Orange County, with over 23 years of experience and over $1.4 Billion in sales. She and her team of neighborhood specialists are ready to assist you anywhere in OC. Have a question? Email her at [email protected] DRE#01380037 Follow her on Instagram @machoskiehomes.com