What Is an Appraisal Gap?
An appraisal gap occurs when the buyer's lender-ordered appraisal comes in below the agreed purchase price. The lender will only finance up to the appraised value, so the difference must be resolved.
Your Four Options
Option 1: Lower the price to the appraised value. You absorb the gap.
Option 2: Buyer covers the gap in additional cash above their down payment.
Option 3: Split the gap — you lower the price partway, buyer brings extra cash.
Option 4: Terminate — if the buyer has an appraisal contingency, they can walk away and get their earnest money back.
What Usually Happens
In most cases, sellers and buyers negotiate a split. The outcome depends on market conditions, buyer motivation, and how much cash the buyer has available.
Waymark's Approach
On Manage, your broker reviews the appraisal gap situation and your options before you respond. On Launch, Aria explains each option clearly so you understand the financial impact.