What is an appraisal gap and how big can it be?

An appraisal gap is simply the difference between the contract price and the lender's appraised value, and it can run from a small, easily covered amount to a figure large enough to end the deal, depending entirely on the specific property and market conditions at the time. There is no fixed size to expect, since it depends on how competitive the offer was relative to true comparable sales. Brian Beatty checks the appraisal's comparables before advising how to respond to any gap.