Bank owned, price subject to change with appraisal?

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Need some help. We put an offer on a bank owned property and after a few counter offers on price, the bank accepted. The realtor sent over the paperwork and it included addendums which stated that the price was subject to change if appraisal was higher than agreed upon purchase offer. What??? We told realtor we wanted that removed and she said that we cannot alter the bank’s addendums It stated that it was per HUD guidelines but the property was not listed as HUD sale. We checked and HUD has no case file on this property. It was a reverse mortgage sale and owners have turned over to bank and realtor assured it was clear title/deed with no special issues to work through like short sale etc. So what is going on here if anyone knows? We are really confused why the negotiation on price when it appears subject to anyway? Just want advice before we walk away. Thanks!

RM's are Insured by HUD, therefore the HUDguidelines......for at least the first 180 days, the property must sell for 95% of appraisal for the lender to be reimbursed by HUD....

24 CFR 206.125

Typically, the lender will order an appraisal prior to listing the property for sale.  Is this a short sale-same rules apply.