The home appraising for the purchase price is one of the top reasons why a home sale falls apart today. The lender always will request that all mortgages are required to have an appraisal for the subject property that is being purchased and must appraise for atleast the purchase price. The issue at hand is that most appraisers view Michigan and Metro Detroit as still being a declining real estate market and are being extremely aggressive with appraisals. Lenders do not want to be stuck with a mortgage on a property that is worth less then the mortgage on it so banks will not lend a penny over the appraised value. Once an appraisal comes in low there is one of three outcomes. 1.) Adjust sales price to the appraised value 2.) Purchasers comes up with the difference with their own money 3.) The transaction is canceled.