09/21/2026
Appraisal gaps catch a lot of buyers off guard, especially in competitive situations where the winning offer comes in above list price.
✔ An appraisal gap happens when the appraised value comes in lower than your agreed purchase price
✔ Lenders only finance based on the appraised value, not the price you offered
✔ Appraisal gap coverage means you agree upfront to cover some or all of that difference in cash
✔ It's a common tool in competitive offers, but only smart if you understand exactly how much you're on the hook for
✔ Your agent should walk you through the real numbers before you include it in an offer, not after
If you're planning to make an offer in a competitive situation, this is worth understanding before you're in the middle of one. We're happy to walk you through it.
📞 (847) 507-2644
✉️ [email protected]
📞 (773) 344-2340
✉️ [email protected]