An unbiased estimation of a property's true value conducted by a third party professional Appraiser. Your bank is only able to lend you equal or lesser value than what a property appraises for. If the appraisal is greater than the agreed upon purchase price, then there is a gap in the amount you owe and the amount the bank will lend you. If you have an appraisal contingency in your contract you are able to renegotiate the price in order to reduce or remove that gap. If you decide to continue with your purchase without negotiating, you are responsible for paying the gap at closing and it most often cannot be rolled into your loan.