If a home does not appraise for list price and seller backs out does seller have to re-pay buyers fees paid for inspections and appraisal?

It is all up to the contract you signed. But normally no, this is a risk the buyer takes, It does show, that the house seller is asking too much for house, so at this time, the buyer should make a new lower offer to seller.

the seller, will know now, that theywill never sell house at the higher price is the house value is too low.

The real estate agent is not legally liable, but they should have known a house was over priced.

Short answer, no. There was a contract at a certain price and the buyer couldn't get a mortgage for that price, so he's out the costs of finding out. Appraisals might even be different from different lenders. Not the seller's fault or the agent's.

That is part of the buying process. My son just went through a similar circumstance and it finally came down to the agents convincing the seller to go with the appraisal price and my son to take the house as is. Saved $8K on a $106,000 purchase. Total repair costs were less than $500 DIY.

That actually sounds strange. If a buyer made an offer, but the house appraised for less, why would the seller back out? I can see the buyer backing out, but not the seller.