What are the practical implications for a home buyer when a house is appraised at lower value than asking/offer price?

Question

I know that a house being under-appraised can really screw things up trying to close on a home, but why/how so?

In: Economics

Answer 1

Gotta make up the difference. I had to do this. House was appraised at 98% of my offer. I had to pay cash to make up the difference.