An appraisal gap can be a deal-breaker—or a deal-maker—when buying or selling a home in Santa Clarita, Valencia, Saugus, Newhall, Stevenson Ranch, Canyon Country or Castaic. But what exactly is it?
An appraisal gap happens when the appraised value of a home comes in lower than the agreed purchase price. That difference (or “gap”) must be covered by the buyer—because lenders base loans on the appraised value, not the offer price.
Why Appraisal Gaps Happen
- Competitive bidding drives up offer prices
- The home has upgrades not reflected in recent comparable sales
- Fast-moving market means appraisers use older, lower comps
What Buyers Can Do
- Negotiate: Ask the seller to lower the price or meet halfway
- Cover the gap: Bring additional cash to closing
- Walk away: If your contract has an appraisal contingency
- Use an appraisal gap clause: A pre-agreed amount you’re willing to pay over appraised value
Local Tip:
Appraisal gaps are more common in hot areas of Santa Clarita like Valencia or Stevenson Ranch. Having a local agent (like me) helps you craft competitive but protective offers.
Worried about appraisal gaps in Santa Clarita? I’ll help you navigate your options and keep your deal on track. Follow me on social for more local buying tips.
Ready to make your next move in Santa Clarita?
Contact Tami Cicerello with The Cicerello Team at RE/MAX Of Santa Clarita — your local real estate expert with 36+ years of experience helping sellers and buyers reach their goals.
661–212–3413| 
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Written by Tami Cicerello, REALTOR® and local real estate expert serving Santa Clarita, Valencia, Saugus, Newhall, Stevenson Ranch, Canyon Country and Castaic.