As the founder and broker of Tverdov Housing, with over a decade specializing in New Brunswick's real estate—particularly multi-family and investment properties near Rutgers University—I've navigated countless appraisal challenges for sellers. In this somewhat balanced market as of January 2026 (median sale prices around $440,000 per recent Redfin data, with homes taking 73 days on market), low appraisals are less common than during peak frenzy years but still occur, especially if comps lag or properties have unique features.
A low appraisal happens when the lender's independent appraiser values your home below the contracted sale price. Lenders base loans on the appraised value (or sale price, whichever is lower), creating an "appraisal gap" that can jeopardize the deal.
Common reasons in New Brunswick:
- Limited comparable sales (comps) for older or multi-family homes.
- Market cooling (prices down year-over-year in some reports).
- Property condition issues flagged during appraisal (similar to CCO concerns).
- Appraiser conservatism in a shifting market.
Options as a seller:
- Negotiate a Price Reduction: Lower to the appraised value to keep the deal alive—common if you're motivated and the gap is small ($10,000-$20,000).
- Split the Difference: Meet the buyer halfway on the gap, perhaps combined with concessions like repair credits.
- Challenge the Appraisal: Provide additional comps (recent sales the appraiser missed, especially Rutgers-proximate multi-families) via your agent or attorney. Request a reconsideration of value (ROV)—lenders must review new evidence. Success varies, but strong local data helps.
- Order a Second Appraisal: Buyer-paid, but you can suggest if their lender allows; rare but possible.
- Buyer Covers the Gap: If your contract allows (no appraisal contingency or waived), the buyer pays cash difference—more feasible for cash-strong buyers.
- Relist the Property: If negotiations fail, cancel (during contingency period) and find a new buyer. In today's market with improving inventory, this risks longer days on market but preserves your price.
Prevention is key: At Tverdov Housing, we price aggressively yet realistically using fresh MLS comps, suggest pre-listing appraisals for unique properties, and build appraisal contingencies into contracts favoring sellers.
For more on Central Jersey transactions, check The New Jersey Real Estate Investor podcast.
Facing an appraisal issue? Contact Tverdov Housing—we'll leverage our expertise to protect your equity and close smoothly in New Brunswick's market.
