<prompt> Human: Long time lurker, first post. I have read through most of the housing posts in the past 3 months however couldnt find something similar to my scenario. Any help would be GREATLY appreciated!So to start, me and my wife are in the process of buying a house. We are 7 days from closingJuly 14th and just got the appraisal back yesterday. The list price for the house was 129,900 and the seller agreed to pay 3.5 closing costs. We will be getting an FHA loan.However, the appraisal came in over 15k below the list price114,000. The appraiser claims that because this property has a repaired sinkhole he deducted 10 because no comparable homes had repaired sinkholes and that is how the market is trending. In addition, he valued a shed on the property for quite a bit below what its value should be...however that is a minor significance.After speaking with the selleragent the seller has agreed to drop down to 120k. Obviously a lender will only finance the value of the house so we would need an additional 6k cash to make the difference. My wife and I absolutely love the house and could most likely come up with the difference.This is our first time buying and I just dont know if this is a good idea. We have a bit of money already tied into this house inspections etc totaling 1k so it certainly isnt an easy decision to just walk away. If it helps at all, it is in Florida.EDIT: Just an update for anyone who cares, we walked. I offered the option of applying for a conventional loan to give the seller a second chance at an appraisal. My stipulation was that he pay for it. He refused. My second offer was for the appraised value 114k and 3.5 closing costs paid.Which he expectedly refused...but jus kind of wanted the satisfaction of giving him the finger. Thank you all for the advice!  <response>: I live in Florida as well. When you go to sell the property later it will still be flagged a sinkhole property. It will always take a value hit and not be as desirable to potential buyers harder to sell later. I would also check what it will cost to insure it. Our homeowners policy was in place before most companies stopped covering for catastrophic ground failure. We still have it, but I am about to drop it because I have seen my cost go up 250-percent I the past 5 years and I am not in a sinkhole area. Unless there are a load of other factors that make this place an unbelievable value I would cut the loss and walk away. I am surprised this was not included in a disclosure statement from the seller. Seems pretty late in the game to be finding this out. 