Appraisal Well Below Purchase Price

[John Whitridge]

Hi BP I am stuck between a rock and hard place and was hoping someone has some advice or experience in the following situation.  

I had an offer accepted on a Duplex for $350,000 and already went through all the inspections and re-negotiations with the seller.  While the loan was in Underwriting the appraiser did the official report and appraised the property at $305,00.  The property brings in $3,200/month in rent and I had no problem agreeing to the asking price of $350,000.   

After talking with my agent it seems the ball is out of my court and the seller either has to bring down the purchase price to $305,000 or walk away from our agreement.  What can I do to ensure the deal doesn't fall apart? Is it possible to get a second appraisal?