How to Handle a Low Appraisal as a Seller in Dallas-Fort Worth

by Steve

What Happens When the Appraisal Comes In Low?

You’ve got a buyer. You’ve signed the contract. Everything’s moving along—until the appraisal comes back lower than the agreed price.

Now what?

A low home appraisal can be a gut punch, especially in a shifting market like Dallas-Fort Worth. But it doesn’t mean your deal is dead. Whether you’re in Frisco, Fort Worth, or Oak Cliff, knowing your options can help you keep the sale on track without losing money—or your mind.

In this guide, we’ll walk you through exactly how to handle a low appraisal as a seller in DFW, with expert-backed strategies that protect your equity and your timeline.

Neighborhood Spotlights: Where Low Appraisals Are More Common in Dallas-Fort Worth

Low appraisals don’t hit every area equally. In rapidly appreciating or transitional neighborhoods, appraisals sometimes lag behind actual buyer demand.

South Dallas & Fair Park

New development is happening fast, but appraisers may not fully account for recent price growth—especially on homes with modern upgrades.

Parts of Fort Worth (Stop Six, Como)

Transitional areas with rising investor interest often see appraisals that don’t reflect real-time competition.

West Frisco & Prosper

Rapid new construction can create inconsistencies when comparable sales (comps) haven’t caught up with builder pricing.

Oak Cliff (Bishop Arts, Kessler Park)

Unique architecture and full-scale remodels can make comps hard to match, which drags appraisal values down.

Want a breakdown of appraisal trends in your neighborhood? Get your Home Seller Score to see how your home stacks up.

Local Market Trends: Why Appraisals Are Still Lagging in 2025

According to NTREIS MLS data (June 2025), median home prices in Dallas-Fort Worth have risen 6.2% year-over-year, yet appraised values have only increased 3.4%. That gap creates friction, especially in hot zip codes.

Expert Quote:

“In markets like DFW where bidding wars are still happening, appraisals haven’t caught up. Sellers need to be prepared for negotiation,”
— Jillian Grant, Certified Residential Appraiser in Dallas

Key 2025 Market Stats:

• 18% of DFW sales in Q2 2025 closed above appraised value

• FHA loans are more likely to trigger reappraisals

• Cash buyers are up 12% YoY, often waiving appraisal contingencies

Cost Breakdown: What a Low Appraisal Really Means for Sellers

Let’s say you agreed to sell your home for $525,000. The appraisal comes in at $495,000.

Buyer’s Lender Will Only Finance Up to Appraised Value

That $30K gap either needs to be made up by:

• The buyer bringing cash

• You lowering the price

• A combination of both

You Might Have to Pay Buyer Closing Costs

To salvage the deal, some sellers offer to pay part of the buyer’s fees to offset the gap.

You Could Lose Time

Appraisal disputes, re-inspections, or relisting can add 3–5 weeks to your timeline.

Builder & Community Insights: How New Construction Sellers Handle Appraisals

Appraisals are a constant hurdle in new communities. Builders often price ahead of the comps—especially in booming suburbs like Little Elm or Aubrey.

Top Builders Navigating Low Appraisals in DFW:

• Bloomfield Homes – often offer appraisal gap incentives

• Highland Homes – use preferred lenders to streamline valuations

• Trophy Signature – emphasize upgrade packages to justify price

Buying new construction? Check out our New Construction Guide or Watch our Webinar for Appraisal Tips.

Financing & Incentives: Your Options as a Seller When the Appraisal Falls Short

1. Negotiate a Split

Meet the buyer halfway. If the appraisal is $25K low, offer $12.5K off and have them cover the rest.

2. Request a Reconsideration of Value (ROV)

If the appraiser missed relevant comps, your listing agent can submit new data for review.

3. Ask for the Buyer to Waive the Appraisal Contingency

Cash buyers or conventional buyers in competitive markets may agree to waive this.

4. Offer Seller Concessions

Instead of dropping price, cover $5–10K of buyer closing costs.

Need to prep your home for a stronger appraisal? Download the Home Seller Checklist

Conclusion: Don’t Panic—Prepare

A low appraisal isn’t the end of your deal. It’s just a fork in the road. The way you respond—calm, strategic, informed—can make or break the sale.

Download the Lone Star Living App now to track appraisal trends and buyer incentives in your neighborhood.

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FAQs: What Sellers Want to Know About Low Appraisals

Can I challenge the appraisal?

Yes. Your agent can file a ROV with better comps, especially if the appraiser used outdated or non-comparable properties.

Do I have to lower my price?

No—but if the buyer can’t cover the gap and you refuse to budge, the deal may fall apart.

Will a second appraisal help?

Sometimes. But lenders rarely order a new one unless there’s a clear error.

Can the buyer switch lenders to get a new appraiser?

Possibly, but it delays the deal by 2–3 weeks.

How often do appraisals come in low?

In 2025, about 8–12% of DFW transactions had a low appraisal, per CoreLogic.

Can I relist at a higher price if I walk away?

You can—but appraisals will likely still cap what buyers can finance.