What happens if my home appraisal comes in higher than my offer price?

A high appraisal is good news for you. It means you have instant equity — the home is worth more than you agreed to pay — and it makes the loan easy for the lender since the collateral exceeds the loan amount. You don't get cash back or a lower price; you simply bought below market value. It can also help you avoid or shed PMI faster, since some lenders let you use the appraised value to hit the 20% equity threshold. The seller doesn't get to raise the price after the fact once the contract is signed. Enjoy the built-in cushion; it's the opposite of the far more stressful low-appraisal scenario in a hot market.