Summary answer: An appraisal gap clause commits you to covering the difference in cash if the home appraises below your contract price. Given Burke's 99%-101.1% list-to-sale ratio and 54.8% of homes selling above asking, gap coverage is genuinely relevant here, particularly on Lake Braddock pyramid and Burke Centre listings.
I'm Johnny with JQ Real Estate. Let me walk through when this actually applies to your specific offer.
How an appraisal gap clause actually works
| Scenario | What Happens |
|---|---|
| No clause, home appraises low | You can typically renegotiate or walk away |
| Clause up to $X, appraises $X below contract | You cover the gap in cash up to that amount |
How to decide how much gap coverage to offer
- Know your actual cash reserves
- Look at how the home is priced relative to true comps
Figure out the right number for your offer
Reach out and let's work through the real numbers before you write an offer.
For more Burke buyer and seller questions, visit our Burke real estate hub.