So, I'm in contract to sell a house to an FHA buyer who needs sellers concessions of $20k. All good seller agreed to that upon signing of contract and chose this offer over 6 other offers (all above asking) because it was the highest. A month into contract and appraisal just came back under $75k of contract price. The bummer is that the appraiser didn't count the finished ground floor square footage, a bedroom and a full bath to the GLA and is considering this space as finished basement recreation area. Is this accurate or did the appraiser undermine the price of this property?
Is this a situation that can be contested by the seller or me to the bank? The buyer doesn't want to change banks and thinks this is accurate and I'm here trying to salvage the deal or should I just cancel this contract and re-list the house.