Can You Sell a House for More Than Appraised Value?

estate agent with client or architect team discussing project on tablet computer

The home appraisal value will not always match what you desire to get from the house.

Appraisals are done by different types of experts, each with their own priorities depending on the purpose of the appraisal. The appraised value on its own shouldn’t be a deal-breaker when selling the house.

Today we look at what happens when you discover your house is not quite worth what you had hoped for, yet you need the asking price to move on. Is it possible to sell a house for more than its appraised value?

The straightforward answer is yes. You can sell a house for more than its appraised value. The technical bit we will be answering throughout this article is how you go about it.

Table of Contents

Differences Between the Appraisal and Fair Market Value of a House

To grasp how it is possible to sell a house for more than its appraised value, you first need to distinguish between an appraisal and fair market value as far as property is concerned.

Market Value

It is also referred to as the Open Market Value (OMV) and represents what the house would fetch in the marketplace under the prevailing circumstances.

It reflects the value the community places on such houses. Without any other consideration, the property is only worth as much as the home buyer is willing to pay.

To better understand the market, you should start by evaluating the selling prices of houses nearby. The market value fluctuates significantly because it is highly subjective and not cast in stone.

It is based on prevailing opinions, feelings, trends and tastes. This means it can be higher or lower than the appraisal value, which considers more tangible variables.

Appraisal Value

This is an unbiased, professional assessment of home value based on predetermined internal and external parameters. Internal factors include footprint, compliance with building codes, the state of the house and the number of bedrooms and bathrooms. External factors can be similar to competing for local listings, location, current trends and the appeal of the listing.

The appraisal value is a guideline for the buying and selling process, especially when a lender is financing the transaction. The lender uses it as an estimation of what they can get in the unfortunate event of a foreclosure.

Mortgage concept by money house from the coins

How the Different Values Affect the House’s Sales Price

Regarding application, the market value represents what a home buyer is generally willing to pay for such a house in the same locality at a particular time.

On the other hand, the appraisal value is what lenders will use to approve or decline home loan applications.

The property might be worth much more to the seller or/and the buyer than its appraised value for sentimental or historical reasons. It can also have specific functionality to the interested parties that the appraiser may not relate with.

If you have a good grasp of your local market, you can list your house at a higher price than its assessed value. You will be surprised to find a large inventory of homes also selling at your price point.

In a seller’s market like Denver, Colorado (also known as the mile-high city), house sales are driven by demand and competition. Homes sell quickly at their appraised value or even above it.

You shouldn’t ask for too much above the appraised value, though. A higher purchase price based on comparable properties might have the property staying in the market longer with fewer showings.

It can brew skepticism because prospective buyers will question why the house has stayed in the market for long. Eventually, the market value will also decrease because of buyer speculation over what is wrong with the house.

The appraiser does not represent anyone’s individual interests in the property and will give a clear report based on their determination.

There can be slight variations in the appraised property value depending on who performs the appraisal and its purpose. Appraisals are done for insurance purposes, home loans, and tax compliance.

When your buyer is being financed, the lending institution will most likely order an appraisal before closing to ensure their exposure is not more than the house’s worth.

They typically don’t finance beyond the appraised value, and you might have to reduce the asking price to match the appraised value. Cash buyers are more flexible when the asking price exceeds the appraisal value.

Appraisers focus on the technical and economic aspects of the home without considering human motivations like décor, personal preferences, and other buyer must-haves.

Common Reasons Why a House’s Appraisal Value Will Fall Below the Selling Price

If the buyer relies on a mortgage, a low appraisal can be a hurdle to maintaining your selling price even after the buyer accepts your offer. The mortgage lender might pull the loan, leaving the buyer helpless.

Here are some common reasons the appraised value might come out lower than the offer price that you should be aware of.

You Overpriced the House

This might be due to personal sentimental attachments or a lack of awareness of the current market value of similar houses in the area. If your asking price deviates too far from what the rest of the properties are being sold at, chances are higher that the appraised value will be lower.

Sudden Inflation

Inflation has a way of disrupting the economy’s pricing system, which leads to the diversion of resources to less than optimal applications. One of the effects can be a drop in demand for housing as people grapple with adjusting. When the demand falls, the overall home price falls, one of the parameters appraisers use to determine their value.

The Property Is Not Well Maintained

The more work a house requires to restore it to its former glory, the fewer buyers will be willing to invest in it. The likelihood of the appraiser determining a lower value also increases.

Market Value Fluctuations in the Area

The real estate market is influenced by numerous social and economic variants that might impact the variables that go into appraisal as you sell the house. These dynamic factors include government policies and subsidies like property tax credits or deductions that boost housing demand, while their withdrawal has the opposite effect.

The housing market is also influenced by changes in interest rates. High interest rates discourage potential buyers from taking out mortgages, lowering demand and market value.

Numerous Foreclosures or/and Short Sales in the Locality

Foreclosed properties typically sell at a discount which has a negative impact on the value of other properties and similar homes in the vicinity. The more such sales are done in your neighborhood, the greater the impact on your property value. You should ride out the wave if you can afford to and let the market correct itself before offering the house for sale.

Appealing the Appraisal Report

Do not accept an unfavorable appraisal report at face value; look through it for factual errors that might be contributing to lowering the house’s value.

 If the buyer doesn’t offer a copy of the appraisal report, you can contact their real estate agent for a copy.

The report might have erroneously indicated the house has two bedrooms while it has three. It might also have included the basement during the computation of the gross living area instead of reporting it separately.

Find out if adjustments were made based on the differences between your house and similar homes used for comparison.

Though you hardly see successful changes in the appraisal, it is worth a shot to eliminate the possibility of factual errors.

These errors should be described in a letter to the buyer’s lender as you find out how to fix them. Don’t contact the appraiser directly as they are not answerable to you. Still don’t like it? Perhaps ask for a second appraisal.

Proceeding With the House Sale Despite the Lower Appraised Value

Wait Until a Comparable Properties in the Vicinity Are Sold at a Price Equal to, or Higher Than Your Asking Price

The state of the housing market in the locality has a huge bearing on the appraisal value of your house.

As soon as comparable properties in the area are sold at or higher than your asking price, you have grounds to appeal for a lower value in your appraisal report. This kind of hot market can form the basis of pushing for a higher appraisal result, provided all other factors are constant.

Discuss the Possibility of Shoring Up the Difference in Cash With the Buyer

Lenders typically shy away from financing mortgages higher than the property’s appraised value. If your buyer is seeking financing for the home sale and your offer is still above the appraised value, they can come up with the difference from other sources if they are really into the house. These can be savings or other sources of income.

Lower Your Selling Price to Match the Appraisal Value

Save this for the last resort. It might reduce your profits but will give you a competitive edge and keep the sale on track. If you are under a time crunch, this might be the only viable option. It also helps to drive traffic to a property that is in a less desirable location.

If a selling price is lower than the appraisal value, it could be the last resort to help sell a home. However, this tactic can reduce your profits but will help set your price in line with other properties for sale. is your best choice for selling home cash. We buy houses in any condition. If you want a cash offer on your property, simply call or fill out our online form, and our team of experts will get to work, quick and smart, to help you get your house SOLD!

Your friend is selling home cash –


Your Solution to Selling a House More Than the Appraised Value is a cash for houses company and we are experts at buying houses in Denver and all of Colorado. Our mission is to give the people of the Mile High city the best solution to sell any house.  When you sell your house to us there are:

  • NO Fees and we cover all the normal closing costs. 
  • NO Stress because you know what is happening at all times – you are in control!
  • Sell your house fast and for easy cash. 
There are even more benefits when you sell a house to including:
  • Sell your house as-is (no repairs)
  • Pay nothing out of pocket
  • Sell fast – you pick the closing date
  • Sell for cash – no bank fees or financing delays
  • 100% Free – no cost and NO STRESS!

This is how selling a house in Denver should be!

Fill out the form to get your no-obligation cash offer today. 

More Scintillating Articles About Real Estate

The latest real estate news, forecasts, insight, and advice are brought to you by the leading authorities in the Denver housing market. We have ears and boots on the ground in the Mile High reporting the facts. Extensive research goes into all our articles and we gather information from trusted real estate experts, renowned local Denver housing specialists, home buyers, and more. We buy houses Denver and as accomplished professionals with a proven track record, we now want to share our experiences with you.   Please enjoy!