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Buyer's Guidechevron_rightGlossary

Appraisal gap

In plain English

The difference when the appraisal comes in below the price you offered. Your lender bases the loan on the lower number, so someone has to cover the gap: you in cash, the seller with a lower price, or both.

By David Knorr · Last reviewed October 28, 2026

Why it matters to you

You can pay the gap, ask the seller to lower the price, meet in the middle, or walk away if your contract lets you. Know which before you offer, especially if you're offering above recent sales.

calculateYou offer $350,000. The home appraises at $340,000. The lender lends against $340,000, so there's a $10,000 gap to cover in cash or negotiate away.
AppraisalContingencyComparable sales

infoGeneral information based on the standard Georgia REALTORS® purchase contract and public guidance. Your own contract decides: read it, and ask your agent or closing attorney about anything that matters. Not legal or financial advice.