How To Handle Appraisal Gap Cost

[Thomas Campbell]

I know there has been someone that has been through this process and could help me with my question.

Numbers are BS numbers just for the example.

I'm buying a house and the appraisal came in low at $100,000. The Seller won't sell for any less than $101,000. So I'm putting in $1,000 of "cash".

How do I get that $1,000 to the Seller?

Obviously I could write a check for $1000 but that doesn't seem to be the correct way to do this for documentation purposes. Before the sale goes through the seller is going to want to know they're getting the extra $1,000. I'm going to want some kind of documentation that the $1,000 was received for the Gap Appraisal.

So what's the correct way to go about this?

Thanks in advance!

[Taylor L.]

You'll close through escrow. Their job is to handle funds and act as a trusted 3rd party to make sure everyone gets paid as agreed. If you're looking to prove to the seller that you have the funds beforehand, that's called proof of funds. For example, the most recent proof of funds I received from a buyer was a screenshot of their bank account, with sensitive information redacted & enough to demonstrate that it was really their account.