We are selling our primary home in a very hot San Diego market. We received multiple offers, pushing the price 40k+ over asking. Accepted offer came from a buyer  utilizing an appraisal gap clause to offer an addition 10k over appraisal. We got hit with a rather low appraisal that even with the 10k, leaves an 8k shortfall. We have tried all lines of negotiation with the buyer (request second appraisal, split the difference, accept lower price with allowance of 1 month free rent back), the agents have even offered to throw some commission back, but the buyers refuse. They believe (and are being advised), that we as the sellers are contractually obligated to sell them the property at this now lower price of appraisal + 10. We are now being threatened with a lawsuit after close if we do not oblige them. Our broker’s attorney thinks it’s crazy, but the buyers are now being represented by a well seasoned California real estate attorney. What are we missing here? We’ve done so many investment real estate transactions, but of course the first sale of a “family home” and it all goes awry. Any advice would be greatly appreciated!