When the Appraisal Comes in Low: Brooklyn Buyers’ Guide to Staying in Tune

When I taught music, I’d tell my students: “It’s not the mistake that ruins the performance — it’s how you recover.”
That lesson applies perfectly to Brooklyn real estate.

You’ve found your dream brownstone in Park Slope or your starter condo in Bay Ridge. You’re excited, your offer’s accepted, and then—bam—the appraisal comes in lower than the sale price. The energy drops. The deal feels off-key.

But just like in music, a low note doesn’t mean the concert is over. It means it’s time to re-tune the performance.

Act I: The Unexpected Dissonance — What a Low Appraisal Means

An appraisal is the bank’s way of confirming that the home’s value supports the loan amount.
When it comes in lower than expected, it can throw off the entire rhythm of your deal.

According to The Wall Street Journal and The Real Deal, low appraisals have become more common in fluctuating markets — especially in Brooklyn neighborhoods where property values are changing block by block.

This can happen when:

• Comparable sales (“comps”) haven’t caught up with recent demand

• The appraiser isn’t familiar with hyper-local micro-markets

• Upgrades or unique features aren’t fully accounted for

It’s unsettling, yes — but it’s not final.

Act II: Finding the Right Note — How to Respond Strategically

As I often tell my tenor students, “Don’t push harder — adjust smarter.”
In real estate, that’s exactly what you need to do when the appraisal comes in low.

Here are your best next moves:

1. Reassess the Comparable Sales (Comps)
Work with your agent to present stronger local comps. In neighborhoods like Windsor Terrace or Dyker Heights, one block can make a big difference in pricing. A skilled agent will identify nearby sales that reflect the true value of your home.

2. Renegotiate the Contract
Buyers and sellers can find middle ground — perhaps lowering the purchase price, splitting the difference, or negotiating repair credits.

3. Challenge the Appraisal
You have the right to request a reconsideration of value. If factual errors or overlooked improvements are found, the lender may revise the appraisal.

4. Consider a Second Opinion
Sometimes, bringing in a different appraiser can reveal a more accurate reflection of the property’s worth.

Act III: The Crescendo — Staying in Harmony

A low appraisal can test your patience — and your confidence.
But as The New York Times points out, the most successful buyers and sellers in today’s market are the ones who remain flexible, data-informed, and calm under pressure.

Brooklyn real estate is full of nuance.
With the right advocate, a low appraisal becomes less of a crisis and more of a chance to reaffirm the property’s value — and your commitment to the process.

When handled well, the closing still happens on key.

The Final Note

Whether you’re buying your first co-op near Prospect Park or a family home by Shore Road, my role is to help you stay composed when challenges arise — keeping your transaction in harmony from contract to closing.

Learn more at PenRealty.net and discover what A Signature Experience truly feels like.
And if you’d like to join me in supporting Alzheimer’s research and awareness, please visit PenRealty.net/donate-to-caring-kind-ny.

Because real estate, like music, is about connection — and every note counts.