Yes, it is over a year old...AND...
the market has changed from a buyer to seller market.
Today, sellers who are represented well, will not be penalized for buyers insufficiencies or lender Fiat appraisals. The buyer willl need to be able, willing and capable of bridging the gaps that will appear in the 2013 market.
The seller presenting this question would be a significantly stronger position to impose his willl on the buyer in the 2013 market. The current seller sees that 'pay closing costs' and the potential of a low appraisal and will hit the reject button UNLESS the buyer demonstrates their power by overcoming these obstacles.
The difference 17 months can make.