A low appraisal does not automatically create the same cancellation right in every Florida purchase. The signed contract, selected financing terms and remaining deadlines control your options.
Reviewed and corrected October 5, 2026. Original publication date retained.
Read the contract before choosing a remedy
the Florida Realtors/Florida Bar AS IS contract form includes a financing provision addressing a lender-required appraisal or alternative valuation. Under paragraph 12(a), a buyer may also terminate in the buyer’s sole discretion by delivering timely written notice before the inspection period expires. A financing provision is not the only possible contractual right.
Quantify the lender’s actual gap
Assume a hypothetical $450,000 purchase, a $430,000 appraisal and a lender permitting an 80% loan against that value. The loan would be $344,000 and the price-to-loan difference $106,000 before costs. At an equal $450,000 valuation, an 80% loan would be $360,000 and the difference $90,000. The valuation change adds $16,000 to that comparison.
Discuss alternatives without promising acceptance
Ask the lender whether an error review, additional buyer funds, a negotiated price reduction or a permitted credit can address the transaction. A seller is not automatically required to reduce the price, and a credit does not erase the valuation gap.
Protect the deadlines
Use the signed document and obtain legal advice before giving notices or assuming the deposit must be returned. the Florida Realtors/Florida Bar AS IS contract form contains distinct inspection, financing and deposit provisions; changing or waiving one may not change another.
Frequently Asked Questions
Can I cancel solely because the appraisal is low?
Not universally. Review the actual contract and any independent rights still available.
Is the example an appraisal or lender quote?
No. It demonstrates the arithmetic of an assumed 80% loan against a hypothetical valuation.
Talk with our team
Contact MVP Home Group to discuss the property and the next step that fits your plans. For legal, tax, loan or insurance questions, obtain advice from the appropriate qualified professional.
About MVP Home Group
Nelson Cruz, P.A. is the Founder & CEO of MVP Home Group, brokered by Real Broker LLC. He brings nearly two decades in law enforcement to his work in real estate. Contact our team through Nelson’s profile.