There really is no one to blame.  I mean you could argue that the listing price was too high, the buyer offered too much, the seller accepted a too high a price.  In a case like this, people need to regroup and rethink and see if the deal can be tweaked to everyone's satisfaction and then proceed.

Sometimes a poor appraiser.

An appraisal is an opinion of the value of the property. Unfortunately the appraiser holds the power to give their educated opinion of value. Sometimes it works for us and other times against us. Lately, mine have been working against me. 

I had one about 3 months ago...Seller would not budge and I could not blame them.  Myself and the other agent comped it out above asking...but the appraiser would not use any of those comps, instead used ones that were as close or even close to the style of property.

I don't know that I want to use the word 'blame.'  In an ideal world, appraisers would be up to date with market comparables and trends. That said, smart listing agents will make sure they meet the appraiser and provide him or her with that information.

No one.  Buyer wants an overpriced property, come up with the remaining money or lower your expectations.

we have not lost any yet, Paul....but there's always a first!!

Our market is increasing 11%+ and we do have appraisals come in low, and just tell the seller, at least they got the highest and best price.  

There's no one to blame.  If an appraiser doesn't use good comps, chances are a lender isn't accepting their appraisal.  In many hot markets, comps haven't yet caught up to contract prices, and it creates a situation of frequently low appraisals.  Not much can really be done about it.

Paul,

Blame is our opinion is the easy way out of a situation, and it often partners with shame and regret.  A good appraiser usually looks at the comps, at least they do in commercial real estate.  We had a rental appraised a few years back and the appraiser did that also, besides all their usual stuff.  A

Paul S. Henderson, Realtor, Tacoma Washington In an explosive market, the appraiser has a difficult job. We can blame them all day long, but the lender is going to side with the appraisal. Appraisals are subjective, but with good comps they are usually on target. One reason I always give the appraiser my comps to review.

I haven't had many problems with sellers. If they refuse and the buyer decides to walk, the seller will usually come around.

An appraisal is not an exact science so the only one to really blame is the appraiser. However the agent should have done a good job in pricing and looking at the comps in the first place. If the agent is off the mark then the blame can rest there.

Usually, I blame no one...all the seller needs to do is lower the price and move out. Problem solved.

A short appraisal means its time for the listing agent (who probably told the seller just what they wanted to hear when pricing the property) to get real with the seller...and no, the buyer should NOT pay more than the appraised value.

Eve

We have not had that issue in Metro Atlanta Area.  But I have had that in the past and the first thing I do is pull comparable and email them to the apprasier.  I have been able to save a couple of deals in the past.

Good morning Paul. Hopefully the listing agent has supplied a good set of comps for the appraiser.

Paul - Silvia Dukes PA, REALTOR, CRS, CIPS, SRES provided a great answer. There is no reason to blame anyone, just figure things out to keep the transaction from falling apart.

In a sellers market, typically the buyer has to come up with the difference. In a buyers market, the seller will be more willing to drop their price.