What Happens When a Redmond Home Appraises Low

I'm Holli Cobb, REALTOR® with REAL Broker in Redmond, and this is one of the more stressful moments in a purchase: your offer is accepted, and then the appraisal comes in below what you agreed to pay. Your lender bases your loan on the appraised value, not the contract price, so a gap between the two means your financing has a problem to solve, not necessarily a reason to walk away.

Appraisal gaps show up more in a market that's shifted or where recent comparable sales are thin, when a seller prices based on where the market was a year ago and the appraiser leans on more recent, slightly lower sales, the two numbers can miss each other. For a sense of where Redmond stands, MLS data for the 97756 zip code in August 2026 shows a median asking price of $517,700 for active listings, a median sale price of $454,950 for homes that sold that month, and a median of 29 days on market. Those numbers move every month, so ask me for the latest before you price or make an offer.

A low appraisal isn't automatically a dead deal. Depending on your contract and your comfort level, you can ask the seller to come down to the appraised value, split the difference, bring the gap in cash if you have it and still like the price, or request a reconsideration if the report has a clear error, missed square footage or an overlooked comparable sale. If none of that works and you have an appraisal contingency, you can walk away and get your earnest money back, that's not a failure, it just means the numbers didn't line up on this one.

Have your agent walk you through recent, sold comparables before you write an offer, not just what other sellers are asking. Be cautious with any escalation clause, an escalation cap should still be a number you'd feel good about if the appraisal comes in at or below list. And only waive an appraisal contingency if you genuinely understand, and can afford, what it means if the value comes in short.

If you're weighing an offer in Redmond and want a straight read on appraisal risk before you write it, that's exactly what I help with, detailed on how I help you buy a home. Get in touch before you submit.