Hi All - I'd like your thoughts on this. I submitted an offer on 1/17 for 180K for a condo in Los Angeles. The lender completed the appraisal on 2/24 for 165K due to various delays. The seller is telling me that we missed our deadlines (fact) and does not want to go down on the price. He wants to arbitrate the 10K of escrow money.

I want to buy the place for 165K; otherwise I want to pull this offer.
Question

: Do I have a case to send the cancellation of contract? The bank won't lend me more than 165K; but the seller says we missed our deadline. I would like to send a cancellation asap but my agent says he can negotiate the price for 165K.
Question 2

: If you think this might get to arbitration, should I pursue this with a real estate attorney?
Any help is apprecited. Thanks.
-leo