Covering a gap

The big idea

Should you offer to cover an appraisal gap?

Covering a gap comes out of your down payment.

Saying "I'll cover up to $10K of any gap" can win a house in a busy market.
Just know it comes out of the cash you planned for your down payment.
Talk to your lender before you offer it.

See it in an example

Example

You cover a $10,000 gap.

Offer $310,000, appraisal $300,000 → gap $10,000

$10,000 comes out of your $40,000 down payment → $30,000 left

Example from our team's guide.