No – you’ve got it backwards. Normally the appraisal has to be at least as much as the loan amount although in CO contracts it has to be at least as much as the purchase price or the buyer can terminate.
6.2.1. Conventional/Other. Buyer has the sole option and election to terminate this Contract if the Property’s valuation, determined by an appraiser engaged on behalf of , is less than the Purchase Price. The appraisal must be received by Buyer or Buyer’s lender on or before Appraisal Deadline (§ 3). Buyer has the Right to Terminate under § 25.1, on or before Appraisal Objection Deadline (§ 3), if the Property’s valuation is less than the Purchase Price and Seller’s receipt of either a copy of such appraisal or written notice from lender that confirms the Property’s valuation is less than the Purchase Price. This § 6.2.1 is for the sole benefit of Buyer.
FHA and VA loans have their own parameters although basically the same.