An appraisal gap clause commits the buyer to cover the difference between the appraised value and the contract price with additional cash. This eliminates your biggest financing risk - that the lender's appraisal comes in low and the deal collapses or gets renegotiated. A buyer offering a $50,000 appraisal gap on a $2M purchase demonstrates both financial capacity and commitment to closing at the agreed price.
From the seller playbook: Competitive Offer Structuring: Beyond Nominal Price
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
More questions on this topic
List for free, or go full service for 1%.
Use the playbook yourself, or let us run pricing, marketing and negotiation.