What happens when appraisal is lower?

[Alvaro Rodriguez]

I am in the process of closing on a house, closing date is 2 weeks from now. However, the appraisal the lender ordered came back $17k lower than the asking price. At this point what is the most logic next step? I don’t want to pay $17k more than the appraisal. This is not a house, is this still a point where I can negotiate price with the seller party? Do I request the seller to lower the price by $17k? Or that they lay closing cost?

I was thinking if they pay for closing cost I would still get stuck with an overpriced house.

Any feedback on what to do when they appraisal is significant lower than agreed price?

Thank for you for all the feedback