Ever consider taking a shot at raising the sales price to the appraisal but insisting the seller give the $8,200 for repairs in escrow, period.

And I hope the appraiser wasn't a MAI appraiser, you know made as instructed. Did you check the comps? That is what appears to be the best offer the seller will get in the current market, and if he wants to gamble I would say his motivation sucks, and the agent is someone I would put on my don't show list for his listings.

I don't know this sellers motivation but I definitely agree it's a buyer's market and I would have prepped my buyers to pull the offer and leave it in the sellers lap. Keeping a motivated buyer in check is part of the job, and if the seller doesn't want a sale in a market that may decline even more due to the economy, and the listing agent doesn't need the money, so be it.

You have a ready, willing, and able buyer and I would start showing them other properties and let the other side know it. Let the fear of loss go to work. Now that the inspection has disclosed the repair problems, the seller and the listing agent are going to have to disclose that to the next buyer prospect.

I don't know how things are done where you are but I hope it isn't one of those idiotic areas where custom has it only the listing agent is at the presentation of an offer and you don't present your buyers position directly to the seller.

If it is, then rewrite the offer so it contains a clause that only you may present the offer and no one else or the offer is void. This seller needs an awakening. But maybe he's the leader of the pack and you guys need to get in line as far as he's concerned. Don't let your buyer overpay in this market!!!