What is an Appraisal Gap Coverage Clause?

Appraisal Gap

The appraisal gap coverage clause is something that can protect the seller when the appraised price comes in below of the contract to purchase price.  It basically provides that the buyer will be responsible for making up the difference between the reduced appraisal price and the offer price whereas without it there are other ways it could be resolved including the buyer walking away from the purchase.

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Written by RealCincy

Real estate agent licensed in the states of Ohio and Kentucky. Work in the Greater Cincinnati and Northern Kentucky real estate markets.

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