When a home doesn't appraise as high as the purchase price, you have the right as the buyer to pay the difference or ask the seller (in this case the bank) to come down on the purchase price. The purchase offer you submitted should stipulate these details. You shouldn't be bound to purchase a home that doesn't appraise. I'd say you're in the driver's seat here, your first move should be to ask the bank to come down on the price. Secondly, appraisers can revisit their numbers and change their appraisals. Another appraisal would be at the descretion of your lender and you should know ahead of time if a lower appraisal will supercede the first, be careful there. If this low appraisal is accurate, the bank (seller) will run into this problem with any offers, unless the buyer is not taking out a mortgage and paying cash. Good luck!