[Fred Z]

There are some circumstances that pertain here.
first......in calif....most CAl Assoc. Realtors forms include the form......(Market Conditions) which contains the wording......in brief....that informs buyers and sellers that the choice is theirs to decide, and that no guaranty can be offerd to offset their responsabilty to make that decision.
Further, we at my Corporate company....have a seperate form that we provide buyers and sellers that statess" As a result of changing market conditions , it may be difficult to secure appraisal reports that support the current market prices.
The ultimate decision of what amount to offer on any given property rests with you, the buyer. There can be no guarantee that the current proces will be sustainable as the current market conditions change. You need to decide what you ae willing to pay for the property in light of the market conditions, your housing needs, and your own financial resources. You also need to decide what type of offer youare willing to make in recognition of these market conditions.
I would imagine that the Realtor in this case, did his due diligence and had those forms signed. If so, though not a done deal, the suit will be tough to prove and be real in courts eyes.

I work in a very high end market in Manhattan and Hermosa Beach...so, I make sure all my clients are protected and aware of all situations.
fred z