Is your Weston dream home at risk because the appraisal came in low? You are not alone. In competitive Broward County pockets, prices can move faster than comparable sales, which can cause an appraisal gap that surprises even well-prepared buyers. In this guide, you will learn exactly what an appraisal gap is, why it happens in Weston, and your best options to keep your purchase on track without overextending your budget. Let’s dive in.
What an appraisal gap is
An appraisal gap happens when the property’s appraised value is lower than your contract price. Since lenders base your loan amount on the appraised value, not the purchase price, a shortfall can leave you with less financing than you expected.
If your loan program approves 80 percent loan-to-value, the lender finances 80 percent of the appraised value. You are responsible for any shortfall between the loan amount and the contract price. That gap must be covered with cash, a price change, or a different structure.
Here is a quick example. If you are under contract at 900,000 and the appraisal is 860,000, your 80 percent loan is based on 860,000, not 900,000. The difference shows up at closing unless you renegotiate the price.
Why gaps happen in Weston
Weston is a suburban, higher-end market with a mix of single-family homes, townhomes, and some newer construction. Unique features, custom renovations, and resort-style outdoor spaces can be hard to match with recent comparable sales, especially when inventory is tight. That can lead to contract prices outpacing what recent comps support.
Local conditions add complexity. Flood zones, elevation, and insurance or mitigation features can influence comparability across Broward County. Community amenities, HOA differences, and neighborhood segmentation in Weston also affect valuation.
You can use public sources to understand market context while you plan your offer. Review parcel records and recent transfers through the Broward County Property Appraiser. Check city updates and development activity on the City of Weston website, and track trends through Florida Realtors market data for Broward County.
Your options when the appraisal is low
Renegotiate the price
Ask the seller to reduce the price to the appraised value or to a number that restores your financing. Share the appraisal report to support your request. This option keeps your loan aligned with underwriting and protects your cash.
- Pros: No extra cash needed beyond original plan, keeps deal simple.
- Cons: Seller may refuse or meet you only partway.
Bring cash to cover the gap
You can increase your cash at closing to make up the shortfall between the appraised value and contract price. The lender still finances a percentage of the appraised value, not the contract.
- Pros: Preserves the deal without changing terms.
- Cons: Requires significant liquid funds and means you are paying above the appraiser’s opinion of value.
Split the difference
You and the seller can agree to share the shortfall. This is common when both sides want to keep moving and the gap is modest.
- Pros: Spreads the burden and keeps negotiations collaborative.
- Cons: Requires cooperation and quick agreement.
Request a Reconsideration of Value
Work with your lender and agent to submit additional or better comparables, corrections to property details, and documentation of improvements. The lender can request a desk review or ask the appraiser to reconsider.
- Pros: Can resolve errors or omissions without starting over.
- Cons: Results are uncertain and timelines are tight, so act quickly.
For general guidance on appraisals and the process, the Consumer Financial Protection Bureau explains how appraisals work.
Order a second appraisal
If your lender permits it, you can request a new appraisal, often at your cost. A second opinion may support a higher value.
- Pros: Another chance to confirm value.
- Cons: Extra time and money, and the second appraisal can also come in low.
Use your appraisal contingency
If your contract includes an appraisal contingency, you can cancel within the agreed timeline if the appraisal is below the contract price. Follow the notice requirements exactly.
- Pros: Protects your deposit and prevents overpaying.
- Cons: You lose the property and may re-enter a competitive market.
Lean on an appraisal gap clause you already included
If your offer included an appraisal gap guarantee, it commits you to cover a specific dollar amount of any shortfall. This clause often strengthens offers in competitive situations.
- Pros: Reduces seller concern about financing risk.
- Cons: You must bring the promised cash if the appraisal is low, and lender limits still apply.
Consider alternative structures
Some buyers explore seller financing for a small second note or a simultaneous second loan. Availability varies and depends on lender approval and careful legal structuring.
- Pros: Can bridge part of the gap without all cash.
- Cons: More complexity and lender scrutiny, not always available.
Changing loan type
Switching from FHA or VA to conventional rarely changes the appraised value. Program rules differ on repairs and process, but lenders still underwrite to the appraised value.
- Pros: May help with repair issues in some cases.
- Cons: Not a reliable fix for a low value conclusion.
Prepare early to lower risk in Weston
Strong preparation reduces surprise. Before you write an offer, study recent, relevant closed comps with your agent and be realistic about premiums for unique features. If you plan to bid above list, consider setting aside a cash reserve to cover a potential gap.
Ask your lender during preapproval whether your scenario might be eligible for an appraisal waiver. Fannie Mae and Freddie Mac have established program rules for appraisal requirements, which you can review in the Fannie Mae Selling Guide and Freddie Mac’s Automated Collateral Evaluation overview. Waivers are not available for many properties and loan profiles, so treat them as a bonus, not a plan.
When you go under contract, set clear timelines for the appraisal and contingency response. If you expect bidding pressure, define any appraisal gap coverage right in the offer, including the exact dollar amount you are comfortable covering.
What to gather for a value reconsideration
If the appraisal comes in low, act fast. Ask your agent to compile:
- Closed sales that are truly comparable in size, age, condition, and proximity.
- Corrected facts about the subject property, such as finished square footage or lot size.
- Documented improvements with permits and receipts, especially major renovations.
- Photos that show condition and upgrades other comps did not reflect.
- Neighborhood context like community amenities that comparable sales share.
The more factual and relevant your package, the higher the chance of an adjusted value. Your lender will guide how to format the request.
Florida and Broward details to keep in mind
Contract language controls your rights and timelines in Florida. Appraisal contingencies and addenda vary, so review your contract closely with your agent, and consult an attorney if you need legal interpretation.
Flood zones, elevation, and insurance costs can influence value and comparability across South Florida. Provide clear documentation if your home has mitigation features or favorable insurance history that may not be obvious from comps. For buyers using FHA financing, look at HUD’s policy resources for appraisal and property standards in the HUD Single Family Housing Policy Handbook.
Quick math example of a gap
Assume a 900,000 contract price with 20 percent down planned. The appraisal returns at 860,000. Your lender finances 80 percent of 860,000, which is 688,000, not 720,000.
The gap is 40,000 between contract and appraisal, plus any down payment adjustments. If the seller does not reduce price, you would bring that 40,000 in additional cash at closing, split it with the seller, or use other options in this guide.
A smarter way to compete in Weston
Appraisal gaps are solvable when you prepare, move fast on documentation, and negotiate with clarity. In a market with unique homes and evolving comps, you win by aligning your offer strategy, financing plan, and contingency approach from day one.
If you want local guidance and a seasoned negotiator on your side, reach out to The Sklar Team. You will get clear pricing strategy, sharp comps, and a calm plan for any appraisal outcome so you can buy with confidence in Weston.
FAQs
What is an appraisal gap in Weston home purchases?
- It is the difference when your contract price is higher than the appraiser’s opinion of value, which limits the loan amount the lender will provide.
How do lenders handle a low appraisal in Broward County?
- Lenders base the loan on the appraised value and loan-to-value rules, so you must renegotiate or cover the shortfall with cash if you still want to buy.
Can I appeal a low appraisal result?
- Yes, through your lender you can request a Reconsideration of Value by submitting better comps, corrections, and documentation, but outcomes are not guaranteed.
What is an appraisal gap guarantee clause in offers?
- It is a clause where you agree in writing to cover a specific dollar amount of any shortfall between the appraisal and the contract price.
Are appraisal waivers common for Weston properties?
- Waivers exist for certain conforming loans under automated rules but are not available for many transactions, especially unique homes or higher LTV loans.
Who pays for the appraisal in a typical mortgage?
- The buyer usually pays the appraisal fee as part of lender costs; cash buyers can also order and pay for an independent appraisal.