From The ValuVault: Appraisal Gaps 101

ValuNation by Nationwide Property & Appraisal Services

Episode notes

Charlie Johnson breaks down what an appraisal gap is and the smart ways to handle it.

Appraisal gap = appraised value < contract price (common in bidding wars) – Appraiser’s job is market value, not “what a buyer paid” – If recent closed comps don’t support the contract price, the value reflects that – Buyer options: bring cash, renegotiate, or challenge with better data (ROV) – Agents should prep a clean packet: multiple-offer context, concessions, DOM, strong pendings (for momentum), and relevant closed comps

📌 Appraisers: Document the market conditions and support conclusions—no guesswork. 📌 Agents/Buyers/Sellers: Be proactive—share offer details, concession ... 

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