Appraisal gaps have become a common topic in competitive markets. Buyers searching for homes in the St. Louis real estate market sometimes hear this term and wonder what it means.

An appraisal gap occurs when a home appraises for less than the agreed purchase price. Because lenders base loans on the appraised value, buyers may need to adjust financing or renegotiate.

There are several ways appraisal gaps can be addressed. Buyers may negotiate with sellers, bring additional funds to closing, or adjust contract terms depending on the situation.

As a St. Louis real estate expert, I help buyers understand appraisal risk before making offers. This preparation allows buyers to make informed decisions about pricing and negotiation strategies.

The goal is always to protect the buyer’s financial position while remaining competitive.

If you are navigating the St. Louis housing market and want guidance on how appraisal gaps work, I would be happy to help explain your options.

— Krista Hartmann