So here’s the deal: I was really far into getting this house. I was approved for everything, the inspection was done, the septic inspection was done, negotiations were made after the inspections came back. I even told my apartment I’d be moving out in 2 months. I got a dentist near there (because I had to go urgently not because I jumped the gun so much). Then, the appraisal came back noticeably lower than they were asking for, and the sellers won’t budge on the price.

My options were: Back out. Pay $9k more down to keep no PMI. Pay some PMI to make up that $9k difference.

Now, I was already ok with buying it at that price, but the down payment would have been lower than is required now to get 20%. Also, I’d be buying a house with an obviously inflated price. Honestly, it’s not my dream house so I’m not heartbroken. AND even though I was very into this house, I was just never 100% ok with the commute. I’ve been fretting about that for weeks.

I talked with some friends, I talked with my parents, I ran the new numbers, and I looked back at the market to see if it’s a unicorn or not. Ultimately, I told my agent and my lender that I want to back out. It’s not done yet I guess but that’s what I’m trying to do.

What would you do?

UPDATE 4/5 1230 EST:

The seller’s came back at splitting the difference (so from 269 to 264.5) which would still be 4.5 over appraisal and would be a few thousand over what I was originally paying for down payment. However, this is still below what I was originally accepting to pay in total. I wasn’t swayed though so I came back at 263 since that would allow me to put down the same amount I already agreed to put down, and I still have no PMI. So the end result is essentially I save some money compared to what I expected over-all, but technically I am paying about 3k over appraisal.

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Then, my lender agreed to a 1k credit to help things out. I think it’s a good deal, it saves me a ton of stress, and I know I won’t find a better house for a long while unless I sacrificed quality for location which I’m not willing to do right now.

Thoughts? I know a bunch of you probably think this is still a bad idea.