And, if you get a low appraisal, what happens next?

Yet another reason for low appraisals is that lenders are becoming increasingly uneasy about the economy.

But with the lower appraisal, the amount he could borrow, based on 80 percent of the valuation, was cut to $392,000.

Because of that, they may find themselves forced to stay in a deal despite a low appraisal.

Buyers who want to proceed with a deal despite a low appraisal have three basic options.

In many cases, a low appraisal is a function of point of view.

The buyer was so upset by the low appraisal that he walked away.

A low appraisal can have a serious financial impact, but the psychological repercussions can sometimes be just as devastating.

Of course a client will choose the lowest appraisal.

But how likely is a low appraisal?