Appraisal Gap
Shows what a low appraisal costs the buyer, under each way the gap could be settled.
Open the Appraisal Gap calculatorStep by step
- 1
Enter the deal
Type the contract price and the appraised value.
- 2
Enter the loan
Pick the loan type (Conventional, FHA, VA or Jumbo, each with its max loan-to-value) and the down payment in percent or dollars.
- 3
Enter the buyer's side
Type cash available and earnest money, and say whether there's an appraisal contingency. Then pick the gap coverage in the contract: none, up to a set amount, or full.
- 4
Add closing costs if you want
Under More details, add closing costs to count against the buyer's cash.
- 5
Download the PDF
If you like, pick a client and property in the Client & property menu above the button so the PDF says who it's for. It doesn't change your numbers. Download the Appraisal Gap PDF with your name, photo and phone on it; it saves to the Results tab.
- 6
Send it to clients
The Share tab has your branded link for this calculator, with buttons to copy, text or email it. Clients can run it there on their own.
Reading the results
The top number is the extra cash the buyer needs beyond the planned down payment. If that's more than the cash available, a warning says by how much.
The table shows each outcome: buyer covers the full gap, buyer covers up to the set amount and the seller drops the rest, price drops to the appraised value, a 50/50 split, or walking away.
Assumptions
The lender lends on the lower of the price or appraised value at the same loan-to-value as planned, so the gap is paid in cash. Check the contract for the exact terms.
What the PDF has
The deal, the numbers under the coverage you picked, and the outcomes table.
On your branded page
Clients can run this calculator on your branded page, techybroker.com/b/{handle}, under Buying. To download the PDF they give a name and an email or phone. That adds them to your clients, and their runs and downloads show in Activity.
Questions
What if there's no gap coverage?
The buyer isn't obligated to pay the gap. The result shows that and points to renegotiating or the appraisal contingency.
Is the earnest money at risk?
The walk-away row says earnest back with an appraisal contingency, and shows the earnest money at risk without one.
Related
Estimates how much cash a buyer needs at closing: down payment, fees, prepaids and escrow, less credits. Also shows the monthly payment.
Shows the full monthly payment with taxes, insurance, PMI and HOA, plus the loan balance over time. Also handles extra payments and discount points.
Every PDF you download is saved, so you can preview it, download it again with your current brand, or reopen it with the same numbers.