What is an appraisal gap?

When the appraised value comes in below the contract price, creating a financing shortfall unless cash covers the difference.

Should I waive the appraisal contingency?

Only with a clear cash plan. Ask your agent to model worst-case cash needed if value falls short.

Negotiate price, seller credit, or a capped gap coverage amount instead of an unlimited waiver.

July 27, 2026 · Buying Guides · 1 min read

Appraisal gaps punish buyers who waive protections without a cash model. Plan the shortfall scenario before offer day.

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What is an appraisal gap?: When the appraised value comes in below the contract price, creating a financing shortfall unless cash covers the difference.
Should I waive the appraisal contingency?: Only with a clear cash plan. Ask your agent to model worst-case cash needed if value falls short.
What else can buyers do?: Negotiate price, seller credit, or a capped gap coverage amount instead of an unlimited waiver.