The Appraisal Gap: What Denver Buyers Need to Know in 2025
When the appraisal comes in below your offer, the deal doesn't have to die. Here's how to plan for the gap before it happens.
You won the house. Then the appraisal came in $15,000 under your offer. This is the appraisal gap, and in a competitive Denver pocket it still happens regularly. The good news: it's manageable when you plan ahead.
Why it happens
Appraisers look backward at closed comparable sales. In a fast-moving micro-market, recent contracts can outrun the comps an appraiser is allowed to use. The number isn't wrong — it's just behind.
Your options when there's a gap
- Bring extra cash to cover the difference between appraised value and price.
- Renegotiate with the seller toward the appraised value.
- Challenge the appraisal with stronger comps — occasionally works, rarely fast.
- Walk away if your appraisal contingency protects you.
Plan for it in the offer
An appraisal-gap clause tells the seller exactly how much over the appraisal you'll cover. It makes your offer stronger without writing a blank check. Decide your real ceiling before you write — not in a panic three days into the contract.
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