This guy created a problem!

Question: I am in the final stage of purchasing property. As a part of my purchase agreement, I inserted a contingency that the appraised value of the home must meet or exceed the selling price. The appraisal came in $14,000 less than the selling price, giving me the right to re-negotiate or to rescind the purchase agreement.

At this point, I allowed the seller to obtain a second appraisal of the property. The second appraisal came in at almost exactly the asking price. This $15,000 difference in appraisal on this property has me both concerned and confused. How do I determine which appraisal is correct?

Answer: You had an appraisal contingency in your purchase offer. It allowed you to back-out of the transaction in the event of a low appraisal. There was a low appraisal. Now the question is this: If you could buy the property how much would you pay? Either the seller will accept your revised offer or not. Be aware that the lender will only finance the transaction on the basis of the sale price or the appraisal, whichever is lower.

As to the two appraisals, you only needed one as required by your offer.  Not sure why you allowed a 2^nd appraisal? The second valuation has muddled the issues.