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Appraisal Gaps: What they are & why you should avoid them

March 10, 2022 | Posted by: Jeremy Wilhelm

Appraisal gaps have become a common occurrence during this seller’s market. An appraisal gap occurs when the buyer’s offer price comes in higher than the appraised value of the home. This becomes an issue because mortgage lenders are typically not going to loan a buyer more than the home appraises for. If the home appraises for less than the sale price, the buyer has a few options:

  1. Pay the difference, which can result in thousands of dollars
  2. Renegotiate, which is unlikely to work in your favor during this seller’s market
  3. Dispute the appraisal, which you need evidence of inaccuracy to do so
  4. Walk away from the home and likely lose your earnest deposit

None of these are favorable options. Luckily, at Wilhelm Mortgage, we offer a phenomenal bid over ask tool that has been vital in today’s market. This tool analyzes the appreciation of the property and gives the buyer an expectation of their break-even point. This tool has been very beneficial for our clients, helping them make an informed decision when it comes to purchasing a home. 

As a buyer, it’s important to protect yourself and have a plan in place before submitting an offer. Please don’t hesitate to email us at so you can be certain you’re making the right decisions during your home buying journey. To learn more about Wilhelm Mortgage, visit our website at

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