Purchase Agreement Terms

[Jacob Elbe]

Hello All!

So I'm still new to REI, but I'm in the process of trying to buy a property through a turn key provider in the Cleveland, OH area. I own one other property, but bought it as my primary residence, so I have no experience with the kind of Purchase Agreement that's involved in the deal. Specifically I have a question about a part of the agreement that talks about the appraisal.

I know the property has been rehabbed and that appraisals often come in below the asking price. I'm okay with that, but I would expect that is the appraisal comes in below the asking price at all, I would have the opportunity to back out of the deal, or the seller would have the option to drop his asking price. In this agreement it says (paraphrased):

If the appraisal comes in at 93% of the asking price or higher, then the purchase agreement is still good. If it comes in at less than 93% of the asking price, then I have the option to back out and get my deposit back, or we can negotiate the selling price.

That seems strange to me because it could mean an extra $4k to $5k in cash I need if I'm locked into the deal and the appraisal comes in at the 93% to 99% area. Is this normal? Should I try to negotiate this out of the purchase agreement? I would be a lot more comfortable with it saying something like:

If the appraisal comes in below the asking price at all, then I have the option to back out or the seller has the option to drop the asking price.

Is that ever the case? Thanks for any help you all can offer!