What is an appraisal gap and should you cover one?

Covering an appraisal gap makes sense when the buyer has the cash reserves to do so and still wants the specific property enough to pay above its appraised value, not simply because a seller is asking for it. A buyer who covers a gap accepts that the extra money will not be reflected in the loan amount or in equity if they sell soon after. Brian Beatty helps buyers weigh that tradeoff against their own reserves before committing to cover any gap.