I second this. If it did not appraise and you can't come in with the 3k I would hold firm on the $187. It puts it back on them to determine if they want to go through this whole process all over again with someone else. Yes, it is possible you may lose the house, but hopefully you get the house and a 3k reduction in price!
Do you know if the appraisal requires any repairs?
One thing to remember here. The seller is not likely to want to relist the home & wait for another offer to come in & then wait for another 30 days +/- for the new buyer's loan to close.
It's not worth $3,000. Don't let the seller play on your emotions.
Here are a couple of solutions.
1) Asking the agents to kick in $1,500 each to make up the $3,000.00.
2) Can you get a gift from a family member for the 3K?
3) Do you have a 401k or other retirement account that you could pull the 3K from?
If none of these options are viable for you then your only option is to reduce the sales price to $190,000 with the seller paying your closing costs.
ok that's good news. That's one less thing that you have to ask the seller for.