The Appraisal Gap: What Happens When the Bank Says No

You won the house. Multiple offers. You stretched. Then the appraisal came in low — and your lender just told you they’ll only lend against the appraised value. In this episode of The Property Professor, you’ll learn what the appraisal gap actually is, why it shows up in competitive markets like Scottsdale and coastal San Diego, the two types of appraisal gap clauses (capped vs full waiver), and the four moves you have if a gap shows up after the offer.

Plus the critical difference between an appraisal contingency and an appraisal gap clause — most buyers conflate them and pay for it. Head to thepropertyprofessor.blog for help structuring your next offer.

Runtime: 5:53 · Sources: Rocket Mortgage, AmeriSave (appraisal gap 2026), The Mortgage Reports, Catamount Realty. Educational content from a licensed mortgage loan originator and licensed real estate agent; not financial advice for your specific situation. Speak with your agent and lender about your specific deal.