Should I Agree to Appraisal Gap Coverage?

Dated: February 14 2026

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Appraisal gap coverage means the buyer agrees to cover a shortfall between appraised value and contract price (within limits).

This can strengthen an offer — particularly in competitive situations.

However, coverage should be clearly defined in writing.

Understanding:

  • How much coverage exists

  • Whether it’s partial or full

  • Financing strength behind it

is critical.

Clarity reduces uncertainty.

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Jared McDaniels

I am a dedicated and passionate, full time, real estate sales agent with a commitment to serving you with excellence. As a lifelong resident of East Texas, I bring a wealth of knowledge and valuable i....

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