That ground is NOT ready for sod, it needs screening to remove all the clods and the slope should even and smooth from the house to the sidewalk. Be sure to have the shingles checked, the photo makes it look as if they might need replacement. Does it have gutters? The home itself is a blank slate awaiting finishing and landscaping.

Can't you negotiate with the seller on the sales contract price to bring it to the appraised value? That's what we do here when there is a shortfall.

As to this home above, landscaping will truly enhance this home. BTW, I would be completely surprised if the sod company did anything before putting down the sod. Usually they just send out labor to lay down sod (period) and not prepare the ground properly. If they are laying sod tomorrow - get out there and take video so you can negotiate with this seller when the sod laborers just put down the sod over what is there without doing what chiflipper has mentioned.

I have heard the Colorado market is very hot. Does the seller have an agent that can explain what an appraisal is and how it works?

It obviously is not worth the amount the seller thinks it's worth. I do run into this as I'm a Realtor and we see sellers' try to fight the appraisals, especially if the market is a rapidly rising market. That bluster about renting out the property is just that....don't give up on your deal easily. Naturally if he won't cooperate, then you need to do what you are planning to do - walk away and get your money back (I'm assuming there is a financing contingency).

That is true about the $1000 inspection(s) expense. However, it is better than spending $17k over market value on a $300k purchase. It is very frustrating when working with a new agent on the other side of the deal. Have your agent contact his/her broker and see if his broker can work with the noobie agent to get him to understand how to read an appraisal. I have found that noobie agents don't know how to review true comps. Just because there has been higher sales in the neighborhood doesn't mean those homes were comparable to the subject property. A good managing broker should be able to discuss the issue and inform the noobie agent the best course of action.

Sounds like you’re getting a snow job, matz. Move on along.

Sorry matz. In other words, the agent appears to be trying to take advantage of your naïveté.

Your original post sounds like you don't like the house. "...seriously boring and lacking curb appeal." Is there something special you really really LIKE about the house that makes it worth the 6% premium price? Lenders have appraisals for a reason. You could do a lot to a house with an extra $17k.

Well, it's basically a white box so you could do anything to it, the questions then become:

-how much will you have to invest in renovations, and

-can you not find a better place with a more reasonable seller for less than the cost of this place plus the reno's.

No shutters. Windows are the wrong size/shape.

I'm in San Diego county near the beach. The supply is low and the demand is still fairly high. Many homes are going for well above asking price and above the appraised value. The area is extremely eclectic and subject to a lot of "emotional buying" and few of the comps at any time are actual comps. Buyers are bringing cash to make up the difference and driving prices up. For the next buyers these homes will be the comps and the next appraisals will be higher. Thats how it works.

Then I would save money if necessary to add a low deck and portico (or awning) and replace the window on the the right with a bigger one to create symmetry on the front. Landscaping will do the rest :)

What a wonderful blank slate to work with. Could be amazing with some landscaping. Dig Doug's ideas are the winner here!