Square footage discrepancy and purchase price

[Sherry G.]

Hello, i need some advise please. When putting an offer on the our duplex I took into account the price per square foot based on the square footage the seller listed. The appraisal has come back indicated the square footage is 2400 instead of 2900 square feet, bumping up the purchase price from 401 a sq foot (which is on the higher end in this market) to 486 a square foot. Our inspection period is not up yet. would you renegotiate the purchase price based on the correct square footage? Would you walk away if the seller would not agree to a lower sales price? The property is in Los Angeles. Any advice would be much appreciated. 

[Charlie Fitzgerald]

Yes and Yes.