I've had three addresses in two years (Updated)

This just in - buying a condo sucks.

So for the last month cerebral drool reader Josh and I have been going through the steps of buying a condo in Burlington. Everything was going smoothly until the appraiser found that the value was $14,000 less than the agreed upon price. So the seller and I examined the appraisal and found some major flaws and I contacted all parties to try to get them rectified. I just found via a voice mail on my home number from the bank that essentially said the errors weren't enough to change the estimate. I disagree. Do I

1) walk from the deal and have no where to live after June 1
2) Ignore the bank and pay full price
3) Negotiate with the seller even though both of us know we're getting screwed

Inquiring minds want to know!!! I'll update as information becomes available.

Update - So I've counter-offered and am waiting to hear back. I've been a wreck. I hate situations where I'm not in control and the waiting game kills me. But three hours ago I found out that the house across the street from the condo is for sale and would only be $200 more a month, so if the seller rejects my extremely generous offer, he can suck it. I'm going elsewhere. And I'll have the fun of watching him try to find someone else as understanding an accommodating as we've been when it again appraises for $15k below his asking price. Which he won't. Which will mean I'll get to laugh at him for months.

Revenge is a dish best served cold. And from across the street.