Blog > What Is an Appraisal Gap?
An appraisal gap occurs when the appraised value of a home comes in lower than the agreed purchase price. Lenders will only finance up to the appraised amount, leaving a shortfall that the buyer must cover or renegotiate. Buyers can include an appraisal gap clause to show they’re prepared to bridge part of the difference. Understanding this risk is important in hot markets where bidding wars can drive prices beyond recent comparable sales.
GET MORE INFORMATION
