One appraisal shouldn’t decide the rest of your financial life. That’s not fairness; that’s roulette with your net worth. Appraisals are opinions, not gospel—two licensed appraisers can be 5–10% apart on the same property. On a $1M home, that’s a $50–100k swing. Without protective language, the first (or only) appraisal can become binding even if it misses square footage, view premiums, or timing.

Build two guardrails into your settlement

1) Add an appraisal floor

A floor caps the downside so a single soft valuation doesn’t vaporize your equity split.

Ways to set the floor:

• Dollar floor: “Not less than $1,050,000.”

• Comp-based floor: “Not less than the median of three agreed comps closed within 90 days.”

• Indexed floor: “Not less than 95% of the pre-mediation appraisal.”

2) Add a dispute clause

This creates a mechanical off-ramp when values diverge—no theatrics required.

Clean structure:

• Either party may obtain a second appraisal from a pre-approved short list.

• If the two numbers differ by more than 5–8%, either (a) average the two or (b) jointly order a third neutral appraiser and use the median of all three.

• Spell out timing (who orders, who pays, shelf-life of appraisals) so deadlines can’t be weaponized.

Sample language (illustrative only; have your lawyer adapt it)

Valuation. The buyout price shall be based on the “Appraised Value.” Parties shall obtain one appraisal from [Appraiser A] within 30 days. Either party may, within 10 days of receipt, obtain a second appraisal from [Appraiser B/C]. If the two Appraised Values differ by more than 6%, the parties shall either: (i) use the average of the two, or (ii) jointly retain a third appraiser; the Appraised Value shall be the median of the three.
Floor. Under no circumstance shall the Appraised Value be less than $_____ or the median of three mutually acceptable closed sales within 0.75 miles and 90 days that are within ±15% of the home’s gross living area.
Shelf-life. Any appraisal older than 60 days at closing is stale and must be refreshed or replaced.

Why this saves real money

A single 7% miss on a $1,000,000 house is $70,000. With a 50/50 split, that’s $35,000 out of your pocket for no reason other than “we forgot a clause.”

Implementation tips

• Pre-approve a short list of appraisers now; don’t argue names later with a rate-lock ticking.

• Each party pays for their own second appraisal; split the third.

• Include a refinance/closing clock that pauses if an appraisal is under review.

Bottom line: A floor stops the free-fall. A dispute clause turns drama into math. Together they protect your equity from a single soft opinion.

Disclaimer (read me): This post is general information, not legal or financial advice. Laws and standard practices vary by state and by court. Talk to your attorney about your specific facts before using any sample language.