Appraisal came in $185k less than contract price.

We recently came under contract to purchase a house for $700k. Originally it was listed for $795k based off a CMA from a realtor done at the end of June. Our lender sent an appraiser and they put a value at $515k.

Appraised price is $185k less than our contract price, and $280k less than the realtor originally listed at based on their CMA.

I’m mind blown on how there could be such a discrepancy.

Has anyone run into something like this? Any thoughts or suggestions on what to do next?! We’re supposed to close in 3 days.