Hello,
I'm FSBO in California. Before advertising my condo I got an appraisal done (11/04). It was for a refi I was planning to do at the time, but never went through. I used this appraisal to set the purchase price. Within 2 weeks I had 3 offers.

I accepted one but it ended up falling thorough due to change of heart on buyer's side, but during this process they had ordered their own appraisal (2/05), and it appraised at exactly what my original (11/04) appraisal was.

Now, I am in escrow with a 2nd buyer, but their appraisal came in 40K less than the previous 2 appraisals. This buyers appraisal was ordered by the bank who is doing the loan for the buyer, who is also the buyers employer. Buyer said that the bank will not take any other appraisals unless they are certified by the bank. Now buyer wants to pay 40K less, saying he will not go with another lender who would take the other appraisals because it would cost him more and he says that he trusts this appraisal more over the last 2 that were done.

Also, in looking at this new appraisal, the appraiser failed to use 2 comps (one in 11/04, one in 12/04) that would've brought the value up stating that there are more recent comps that are consistent with a declining market.

As the seller, with 2 recent appraisals in hand, what recourse do I have? Is this a legitimate excuse for the buyer to back out?

We are using the standard CA real estate contract.

Thanks for your advice!!