To complete a gift of equity, the home's seller must get an official appraisal. A gift of equity occurs when the home seller agrees on a price significantly lower than the home's appraised value.A gift of equity is the sale of a residence to a family member or someone with whom the seller has a close relationship. I'm really struggling with this concept of "gift of equity" and what it can and can't be used for. I was hoping you could help me understand it better.