Low Appraisal - what are the seller's options?

[M.J Ma]

We are in escrow on an investment property. We offered 3K above appraisal value. However, appraisal just came back 30K below listing price. At this, what are the seller's options? Can they legally back out if they accepted the offering with 3K over appraisal?

[Michael Rutkowski]

If this was a bank appraisal, the bank may not underwrite it, or may require you to pay some points, or you can back out based on the appraisal contingency your agent hopefully set up for you in the buysell. If it is not a bank appraisal, it seems like you just have a decision to make. Buy it, or negotiate, or walk away.