Appraisal vs Purchase price

[Jae Min]

Hi all,

We are currently under contract and realized the original purchase price is way too over. Let's say PP: $60k but after all inspections (termites, need for lots of TLC) and the appraisal, it makes more sense for us to offer $45k. The seller is a FSBO and trying to cut all costs and maximize his profit. I was wondering if it's worth keeping an additional $3-4K in the deal to close. We would already have $$ in the deal from using a hard money lender, paying for our own attorney, origination fees, etc.

Would it be worth it to keep some $$ in the deal to meet the seller at a better point or terminate the contract? I don't find it smart to lose out on the long term benefits and the relationships we've built thus far. However, bc my SO is the one with the $$, he says no deal if he can't accept what the FMV is. I disagree. Please help me explain to him my vision, haha.

Thanks for your input!

Jae