An appraisal gap is not a forecast that a home will appraise low. It is a planning issue that can arise when a lender’s appraisal is lower than the agreed purchase price and financing is involved.

For a move-up buyer, that possibility matters because the difference may affect the amount of cash needed, the loan structure, negotiation, or whether the purchase can proceed under the contract. The details depend on the agreement, lender, and property.

An appraisal is an opinion of value prepared for a lending decision. It is not the same as a home inspection, a guarantee of resale value, or a ruling on whether a buyer overpaid. It is one input in a larger decision.

Discuss these questions before offering: How would a lower appraisal affect the loan and cash-to-close estimate? What options could be available under the proposed contract? What amount of additional cash, if any, would you be comfortable using? How does appraisal timing fit the sale of the current home? What would cause you to renegotiate, pause, or walk away?

Your lender can explain how appraisal results are handled in your financing scenario. Your agent can help you understand pricing context using available comparable-property information. An attorney can advise on contract language and rights. Keep the purchase appraisal connected to expected proceeds, reserves, closing-date flexibility, and contingency deadlines.