Why Should You Care About Home Appraisals as a Buyer?

During the homebuying process, the buyer has been pre-approved for a specific amount (loan) to negotiate with. In the event the home’s value is lower than the offer (as determined by comparable properties and the home appraiser), the bank will lend up to only the appraised value. An appraisal gap occurs when the value of the home is “less” than the offer.