Appraisal came back $12K down purchase price

[Frank Agyeman-Duah]

My offer of $165K was accepted by the seller. However, appraisal came in $12K below the purchase price. What is the best way to address this with the seller? 

[Joaquin Camarasa]

1. Context would help here, how long was the property on the market? is there a lot of competition where you bought the property? The main thing here is that if the seller knows they can just put in back in the market and sell it right away you do not have much leverage. However, if you feel the seller just wants to be done with it you do have leverage. It all depends on the context.

2. Think a number that is your last price, start with an anchor that is far from that number. Give the reasoning of why that is your last price. (Your last price can literally be 153k, if you are not willing to pay any cost out of pocket.)

3. Be prepared to walk away.

 If you have a realtor they should be able to provide you with an accurate picture of the seller thinking and best negotiation techniques to move forward.