Legal Question in Real Estate Law in California

This is a difference of less than 5%. Value fluctuations of this amount within a few weeks' time have become relatively common in California's choppy real-estate market. Also, unless the property in question is very easy to appraise because there have been a lot of closely-comparable properties sold recently, a range of plus-or-minus 5% in value from appraisal to appraisal is not too surprising. I don't know what your question is here, because you didn't ask one, but as a general suggestion I'd say look over the appraiser's report carefully to see if you agree or disagree with the assumptions, observations, comparables and conclusions, and if there are significant problems ask for a new appraisal. Otherwise, you may simply be victims of a downturn in the market, or you agreed to pay too much in the first place. There is no law against a seller asking too much or a buyer agreeing to pay too much.

Your options are to either buy it, try to renegotiate, or try to cancel. Your lender probably won't fund unless you add the difference to your down payment. Learn the risks and consequences of each before doing anything. Suggest you consult with an attorney before making any decisions. Feel free to contact me if serious about doing so.