JP,
There is absolutely nothing illegal about pulling out of a contract if it doesnt appraise as well as for many other reasons. However, when a buyer pulls out their credibility with the seller and listing agent takes a hit. Even if it doesnt sell, gets reduced and a lower offer gets submitted by the same buyer, the seller and theri agent have good reason to wonder whether the buyer will walk again. When you accept someone’s offer you take your property off the market and lose the chance to find other buyers that may perform. Thus while not illegal, from a practical standpoint it can be a challenge to come back to a property you have previously cancelled on.
I dont know if you misunderstood the OP’s meaning he just threw the concept out there. I just tried to clarify what it means or should mean in an agents eyes.
