Wow, $250,000 difference in the appraisals, that is a huge difference. Your first question should be...Are the Appraisers familiar with these areas? Are they appraising high end homes regularly? It's all part of the process of buying a high end property. Number 1 you should be working with a Realtor that knows the area. Number 2 your Realtor who sells high end homes and works out of an office that sells high end homes would give you suggestions on lenders that work with appraisers that know the area. Hiring the right people from the start would have saved you all of the worry and you would know that you're paying what the home is worth today. The appraisers job is to determine what the home is worth, so as to protect the lender and therefore you from being upside down on the property. If the appraiser (who knows the area well) determines the price is higher than what you're comfortable paying for it, then this isn't the house for you. There's a lot of homes available, have you been out shopping with a Realtor? If you're doing this on your own, you're probably missing a lot of opportunities. At least email a Realtor, tell them what you're looking for and I bet they come back with some properties you didn't know were available. We really do work hard for our Buyer's.