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What Is an Appraisal Gap? What Homebuyers Need to Know

calendar_today September 24, 2026 person Bennett Leckrone domain ojo-labs

An appraisal gap happens when a home’s appraised value is lower than the purchase price in the contract. For example, if you agree to pay $400,000 for a home and the appraisal comes in at $380,000, there is a $20,000 appraisal gap. That doesn’t automatically end the purchase.

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