In most cases where I have had an appraisal to come in lower than the accepted price on the purchase contract the seller has re-negotiated the price. At times, they will request a second appraisal just to be able to compare, however, they usually come in pretty close to whatever the 1st one came in at. You should notify both your real estate agent and your attorney and provide them both with a copy of your appraisal. Typically, your attorney will do the re-negotiations with the seller's attorney for you, however, there are times when the real estate agents are involved. You should never pay more than what a home is worth, especially in a declining market. The seller understands that this is not something you have control over and should be willing to negotiate, however, be ware, that if they come down on the price and they were contributing anything to closing costs, they will probably try to renegotiate that end of the bargain as well. Good luck. Hope that was helpful!
PanAmerican Mortgage, LLC
Senior Mortgage Consultant