What is an appraisal gap and should you cover one?

An appraisal gap is the difference between the price a buyer agreed to pay and the lower value a lender's appraiser assigns the property, and the lender will only finance up to that appraised number. Covering the gap in cash can keep a competitive offer intact, but whether it makes sense depends on how the gap compares to recent comparable sales and how much cash the buyer can commit without stretching the budget. A local agent can help weigh that tradeoff before the offer is written.