How Should I Handle Appraisal Gaps When Selling My Long Island Home?

How should I handle appraisal gaps when selling my Long Island home?
An appraisal gap happens when a buyer’s lender values your home lower than the agreed purchase price. On Long Island, this can create challenges in closing the deal. Eric Berman REALTOR helps sellers navigate appraisal gaps with smart strategies to protect value and keep sales on track.

What Is an Appraisal Gap?

When a buyer finances a purchase, their lender requires an appraisal to confirm the home’s value. If the appraised value comes in below the agreed price, the buyer’s loan may not cover the full amount.

Example:

  • Contract price: $800,000

  • Appraised value: $760,000

  • Gap: $40,000

Unless resolved, this gap can delay or derail the sale.

Why Appraisal Gaps Happen on Long Island

  • Rapidly rising home prices outpace comparable sales data

  • Unique or renovated homes are harder for appraisers to compare

  • Market slowdowns cause lenders to take conservative valuations

Options for Handling Appraisal Gaps

1. Buyer Covers the Gap

The buyer brings extra cash to cover the difference between appraisal and purchase price.

2. Seller Reduces Price

You agree to lower the contract price to match the appraisal.

3. Meet in the Middle

Both buyer and seller adjust, splitting the difference.

4. Challenge the Appraisal

Your agent and attorney can request a review, providing evidence of comparable sales that support the higher value.

5. Cancel the Contract

If neither party agrees, the deal may fall through depending on contingencies.

How to Prevent Appraisal Gaps

  • Price strategically from the start

  • Highlight recent upgrades and provide documentation to appraisers

  • Accept offers from buyers with strong financial profiles and appraisal gap coverage clauses

Eric Berman often prepares appraiser packets with comps and home details to support value.

How Eric Berman REALTOR Helps

Eric assists sellers by:

  • Reviewing offers for appraisal gap coverage language

  • Coordinating with attorneys if disputes arise

  • Advising whether to renegotiate or stand firm

  • Using local expertise to support valuation challenges

Final Thoughts

Appraisal gaps don’t have to derail your Long Island home sale. With preparation and expert guidance, you can navigate them while protecting your bottom line.

Concerned about an appraisal gap in your sale?

Contact Eric Berman REALTOR today for expert strategies to handle appraisal issues and keep your deal moving.

Meta Description:
Worried about appraisal gaps when selling your Long Island home? Eric Berman REALTOR explains what causes them and how to handle gaps to keep your sale on track.