matt-waiting pretty much summed it up. Also if you want to try to recoup some of your costs then put those conditions in the offer. That is, in the offer stipulate the conditions of what should happen if the home does not appraise and the sellers do not sell it to you at appraised value. For example if they don’t sell it to you at appraised value then they shall recoup your appraisal costs, inspection costs etc… The listing agent probably will resist because they know the home will not appraise either but at least you can try. After all it wouldn’t cost you any money. Alternately if it is poorly priced they will chase the market down and you can make an offer every month or two.
