It is the phone call every buyer dreads and every seller fears. You are under contract, the inspection went great, and you are packing boxes. Then the lender calls: “The appraisal came in low.”

In the real estate frenzy of 2022, "Appraisal Gaps" were a daily occurrence caused by bidding wars. In late 2025, we are seeing them return to New Hanover, Brunswick, and Pender counties for a different reason: The expectation gap.

While our local inventory has risen significantly (up ~25% year-over-year), many sellers are still pricing their homes based on "peak" comparables. When a buyer agrees to that price but the bank’s data says, “Not so fast,” you have a problem.

Here is exactly what an appraisal gap means for your wallet and how to navigate it in the unique North Carolina contract landscape.

1. The Math: What is the Gap?

Simply put, the bank will only lend on the Appraised Value, not the agreed-upon Purchase Price.

The Scenario: You agree to buy a home in Leland for $500,000. You plan to put 20% down ($100k).

The Shock: The appraiser values the home at $480,000.

The Gap: There is now a $20,000 shortfall. The bank will not cover this. If you want the house, you technically have to bring that extra $20,000 in cash at closing, on top of your down payment.

2. The "NC Trap": Due Diligence vs. Appraisal

This is the most critical thing for local buyers to understand: The standard North Carolina Offer to Purchase (Form 2-T) is NOT contingent on the appraisal.

In many other states, if a home doesn't appraise, you get your deposit back automatically. Not here.

The Risk: In NC, you must get the appraisal done during your Due Diligence Period.

The Lever: If the appraisal comes in low before your Due Diligence date expires, you can walk away and only lose your Due Diligence Fee.

The Danger: If the appraisal comes in low after that date, you are legally obligated to buy the house or forfeit your Earnest Money Deposit (often thousands of dollars).

3. How to Fix It: Three Strategies for 2025

If you face a gap, the deal isn't dead. Here is how we save it.

Strategy A: The "Meet in the Middle" (Most Common)
In our current stabilizing market, sellers are more reasonable than they were two years ago. We often negotiate a reduction.
Example: The seller drops the price to $490,000, and the buyer brings an extra $10,000 cash. Both sides feel a little pain, but the deal closes.

Strategy B: The Rebuttal (The "ROV")
If the appraiser missed a key value-add—like a new Fortified Roof or an encapsulated crawl space—we can submit a Reconsideration of Value (ROV).
Success Rate: Low, but possible. We provide the lender with better "comps" (comparable sales) that justify the higher price.

Strategy C: The "Appraisal Gap Addendum"
For competitive properties (like oceanfront units in Wrightsville Beach or Kure Beach), we can write a specific addendum into the offer upfront.
The Clause: "Buyer agrees to pay up to $10,000 above appraised value, not to exceed the purchase price."
Why do this: It proves to the seller you are serious and have the cash reserves to handle a bump in the road.

4. A Note for Sellers: Pricing Matters More Than Ever

If you are listing your home in late 2025, "testing the market" with a high price is risky. A low appraisal creates a "branding scar" on your listing. If the deal falls through, you have to put the house back on the market, and future buyers will wonder why it failed. Pricing accurately from Day 1 helps ensure the bank's math matches ours.

The Bottom Line

An appraisal gap is a hurdle, not a wall. But clearing it requires cash reserves and a strategic timeline. You need an agent who ensures your appraisal is ordered Day 1 of the contract, not Day 14.

At Aspyre Realty Group, we manage the calendar as aggressively as the negotiations, ensuring you are never stuck paying for a gap you didn't plan for.