# Appraisal gap

> 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, founder of BuyWise Home. Last reviewed October 28, 2026. Web page: https://www.buywisehome.com/guide/glossary/appraisal-gap

## 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.

> Example: You 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.

## Related

- [Appraisal](https://www.buywisehome.com/guide/glossary/appraisal): The lender's independent estimate of what the home is worth.
- [Contingency](https://www.buywisehome.com/guide/glossary/contingency): A condition that lets you back out without losing your deposit.
- [Comparable sales](https://www.buywisehome.com/guide/glossary/comparable-sales): Recent sales of similar homes nearby: the evidence for a fair price.

_General 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._