|There are weasels everywhere. How much Earnest Money did the Buyers put down? Unless the Offer was contingent upon the B getting & being satisfied with their own independent Appraisal, the Seller would be entitled to the EM if they back out. Good in theory, but, in practice--it's a gamble--and doesn't solve Sellers problem. Besides, you said she'd already caved, so that's moot.|
FWIW, I've seen similar messes when the Lender's Appraiser doesn't come up with a value equal to the sale price.
If it's to close, a price reduction is needed. That may have been a factor here.