When buying a home in Citrus County or Marion County, you may come across the term appraisal gap. Understanding what it means helps you avoid surprises and feel confident during the home buying process.

If you want more tools and guidance, you can also visit my
<a href=”https://cindyburkhardt.com/buying-and-selling-tips” target=”_blank”>Buyer Resources page</a> for helpful information.

An appraisal confirms the home’s value and protects buyers during the loan process.

What is an appraisal gap?

An appraisal gap happens when a home’s appraised value comes in lower than the amount you agreed to pay in the contract.
Your lender will only loan money based on the appraised value, not the contract price.
This creates a “gap” that must be covered before the loan can move forward. Understanding an appraisal gap in Citrus County helps buyers stay prepared if the home’s appraised value comes in lower than expected.

For example:
If a home is under contract for $350,000, but the appraisal comes in at $335,000, there is a $15,000 appraisal gap.

Why appraisal gaps happen in Citrus County

Appraisal gaps usually occur when:

• Homes are selling quickly

• Multiple buyers bid above asking price

• Upgrades or features increase appeal but not appraised value

• Inventory is low in Citrus County, Marion County, or Levy County

Because our local market is competitive, appraisal gaps happen more often than buyers expect.

What are your options if the appraisal comes in low?

If you face an appraisal gap, you typically have these options:

1. Ask the seller to lower the price

Sometimes sellers agree to reduce the price to match the appraisal.

2. Meet in the middle

Both buyer and seller agree to split the difference.

3. Pay the difference out-of-pocket

You bring additional cash to closing to cover the gap.

4. Challenge the appraisal

Your agent can request a reconsideration of value with updated comparable sales.

5. Cancel the contract (depending on your contingency)

If your contract includes an appraisal contingency, you may be able to walk away without penalty.

Can an appraisal gap clause help buyers?

In competitive situations, buyers sometimes include an appraisal gap clause.
This is a statement in the offer that says you will cover up to a certain amount if the appraisal comes in low.

For example:
“Buyer agrees to cover up to $5,000 of any appraisal shortage.”

This strengthens your offer, but only use it if you feel comfortable with the amount.

How to stay protected as a buyer

To protect yourself:

• Review your appraisal and financing contingencies

• Know how much cash you feel comfortable bringing to closing

• Work with a local agent who understands Citrus County and Marion County values

• Review comparable sales before writing an offer

With the right preparation, you can move through the process with confidence.

Ready to buy a home?

If you’re thinking about buying in Crystal River, Inverness, Homosassa, Hernando, Dunnellon, or Citrus Springs, I’m here to guide you every step of the way.

You deserve a smooth, stress-free experience.

https://www.consumerfinance.gov/ask-cfpb/what-is-an-appraisal-en-194/

https://cindyburkhardt.com/buying-and-selling-tips