Boulder/Denver - Property not appraising - what should I do?

[Erika Hexter]

Hi all - I'm in a hot sellers market where properties are not appraising. A motivated seller has approached me directly asking if I am interested in purchasing a property in a stellar location. Note that no agent is involved and we've agreed to proceed if we can agree on a fair purchase price. If the house appraises, we're both happy and can close on the deal ASAP. However, given my recent experiences, properties in this submarket are simply not appraising. Does anybody have any advice on negotiation strategies, solutions to consider or creative ways in covering the gap? I'm hoping to wrap this deal up so any insights would be greatly appreciated!