Do appraisals usually come in low?

An appraisal is an independent opinion of market value, and one that comes in below the contract price is not necessarily flawed. Mortgage appraisals exist so the lender can understand collateral risk, not to confirm a sales price. Lenders generally will not approve financing above the appraised value, and borrowers who believe an appraisal is inaccurate can ask the lender for a reconsideration of value, supporting it with corrected square footage, receipts for improvements, or additional comparable sales from the past 12 months.