Hopefully the appraised value will at least match the purchase price. If you don’t agree with the appraised value and feel your appraisal came in too low, you can contact the lender and challenge the report. While it’s possible the lender may order a second appraisal, typically the appraisal can only be successfully disputed if viable comparable properties were not included in the original report or if you have information to support inaccuracies of the appraisal report. Ultimately, a low appraisal may mean that the seller can agree to lower the home’s sales price or that the buyer has room to renegotiate on the purchase price. If you end up buying the home for less than what it’s appraised at, you can gain equity on the purchase and possibly lower closing costs. For a refinance, if the appraisal report comes in below what you expected, it can have an impact on the to loan-to-value ratio and how much of a home loan refinance your lender will qualify you for. Another impact of a low (or high) home appraisal for a refinance is how much equity you ultimately have in the home and whether it puts you above or below 20% equity, which determines the need for Private Mortgage Insurance (PMI).