Best wishes with your transaction and the successful closing of the sale of your property.
The buyer could still proceed, taking the risk that the house won't appraise for the contract price. But even if it doesn't the buyer could probably still terminate in writing before the loan conditions deadline and get their earnest money back. After all, if the house doesn't appraise, they can't get the loan they intended to get.
Check out paragraph 5.2 - "If Buyer is to pay all or part of the Purchase Price with a new loan, the contract is conditional upon Buyer determining, in Buyer's sole subjective discretion, whether the new loan is satisfactory to Buyer, including its availability, payments, interest rate, terms, conditions, and cost of such new loan. This condition is for the benefit of buyer."
By the way, according to the Colorado contract, if the buyer is getting a VA or FHA loan the appraisal deadline does not apply. (See paragraph 6.3.)
What would the benefit be for you to not give them the extension? Is it an FHA or VA Buyer, does the extension matter?
The Kinslow Team LLC
Coldwell Banker Residential Brokerage
ERA Real Estate