By Amy Nakos and Candice De, The Amy Nakos Group

Over the last 30 days, we’ve had three separate transactions where the appraisal came in below the contract purchase price. That’s notable—and not something we typically see.

Historically, appraisals at least come in at the purchase price. The logic is simple: the contract price itself is a market comp. It represents what a willing buyer and seller agreed to in an open market. When appraisals consistently fall short of that number, it’s worth paying attention.

Here’s what we’re seeing on the ground.

Three Recent Low Appraisals (Real Examples)

1. Condo Appraisal: 1.6% Under Contract

In this case, the appraisal came in 1.6% below the agreed purchase price. Not catastrophic, but still enough to require a solution.

• The seller agreed to cover half of the gap
• The buyer’s agent contributed a portion of her commission
• The deal moved forward without fresh cash from the buyer

This is a fairly common resolution when the gap is small and everyone wants the transaction to close.

2. Duplex Appraisal: 5.4% Under Contract

This one raised eyebrows.

The appraisal came in 5.4% under the purchase price, despite the price per square foot being competitive with the market. We challenged the appraisal, specifically asking the appraiser to re-evaluate the square footage, which we believed was measured incorrectly.

The appraiser declined to make any adjustments.

Because neither the buyers nor the sellers are willing to bridge a 5.4% gap—either with fresh cash or a price reduction—we are now pursuing a second lender and a new appraisal. At this point, that is the only viable path forward for this transaction.

3. Frisco Condo Appraisal: 2% Under Contract

In the third case, a Frisco condo appraised 2% under the original contract price.

What stood out here was the choice of comparables. The appraiser leaned heavily on very recent sales, rather than nearby or more directly comparable units within the same complex or immediate area. That methodology alone can materially affect value conclusions, especially in a shifting market.

What This Tells Us About the Market

We view these appraisal issues as a signal, not a coincidence.

Some property types—particularly entry-level condos—are experiencing price flattening and, in some cases, slight declines. This aligns with what we’ve been consistently telling clients: entry-level condos have faced the most pressure due to affordability constraints, financing costs, and buyer hesitation.

The duplex example also highlights another reality: markets without strong or recent comps are more vulnerable to appraisal risk. When the data is thin, appraiser discretion plays a much larger role—and outcomes can vary widely.

The Big Picture on Appraisals

Low appraisals don’t automatically mean a deal is dead—but they do require strategy, flexibility, and experienced representation. Knowing when to push back, when to restructure, and when to pivot lenders can be the difference between closing and starting over.

If you’re buying or selling in today’s market, appraisal risk is something to plan for, not ignore. And as always, the details matter.

If you want to talk through how this could impact your specific property or transaction, I’m happy to dig in.

This is where real market knowledge actually matters.