An appraisal-gap provision is an agreement that a buyer will cover some or all of the difference between the contract price and a lower lender appraisal, subject to the contract language. It can strengthen an offer but increases the buyer's cash exposure.
A lender generally bases financing on the lower of the purchase price or appraised value. An appraisal gap can therefore change the amount of cash required at settlement.
An appraisal gap is not free competitiveness. It is a transfer of valuation risk from the seller to the buyer.
Yes. A current lender pre-approval helps define a realistic price range and makes an offer more credible when you find the right property.
Yes. Buyers often cross-shop nearby communities, but housing type, age, lot, road access, HOA structure and neighborhood setting can make adjacent areas behave differently.
Jim Stephens Team of EXP Realty works with buyers throughout Greater Baltimore and can help evaluate properties, comparable sales and offer strategy.
General real estate information only. Contract, financing, tax, legal and inspection decisions should be reviewed with the appropriate licensed professionals for your specific transaction.
Jim Stephens Team can help you compare recent sales, current listings, neighborhood competition and transaction strategy for your specific Baltimore-area property or purchase.
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