New Investor Under Contract. Seller trying to back out

[Drew McIntire]

Hello,

I'm a new investor under a for sale by owner contract for my first house hack property. The contract is for an off market townhome in Tempe, AZ for $250,000 with the contingency that if the appraisal amount is lower, the seller agrees to adjust the sale price to the appraised value. The appraisal came back at $230,000 and the seller is refusing to adjust the sale price. I've tried to negotiate and am willing to go a little above the appraised amount but now the seller wants to back out of the deal entirely and won't take anything less than $260-265,000. I will also add I'm currently a tenant at this property and I'm looking for some advice on how to navigate this situation. I'm unsure of my rights under the contract as it is a pretty basic contract drafted by the title company. I have a consultation with a lawyer on Monday to learn more but any advice would be helpful. Thanks!

[Wayne Brooks]

@Drew McIntire If you want to work this out, it’ll need to be through negotiation, convincing.  You May have the right to sue for specific performance but that is unlikely to work out well, after months of a law suit....and a judge may still not make you happy.  The fact that the seller agreed to $250k, and now wants $250-265k, is not a good sign.  Are you sure that your contract Requires the seller to sell at the lower appraisal price?