The Appraisal is NOT a Contingency

Sounds like the Seller is VERY concerned about an appraisal. We had a similar situation this week with a demand to eliminate the inspection contingency. It turned out to be a mobile home (converted to look like a Santa Fe style home) without any disclosure.

Scott,

This actually makes sense to me. A high offer that doesn't appraise, and gets renegotiated, makes little sense.

Rich

The seller may be shooting himself in the foot and actually cause the bids to stay lower.

If the buyer is getting a loan, the bank will send out an appraiser to evaluate the property.  The bank will not let the buyer pay more than it's worth.  If the seller doesn't want the appraisal to be a factor, they need a cash buyer.

John:  Perhaps they will have to short sale if being forced to sell at appraised value.  I've seen this in my area also!  I've had two buyers in the last 6 months pay slightly over appraised value due to there being a no appraisal contingency clause.

It certainly does not surprise me in the Bay Area market. If they do not "go for it" they lose out (because someone else will) but if they do they are exposed. I've heard of a few of these lately and the one good thing is that it is setting higher comparables. It is a very emotional and tough decision for buyers who have to face this.

This happens. The buyer just needs to decide if they really want the house and what they are realistically willing to pay for it. I've written offers for houses $20,000. + over list before because buyer loved the property. We coul see it was undervalued, and the buyers had cash in the bank to make up for an appraisal that came in lower than our offer. #4. The bank can't tell a buyer that they can't buy a house for more than what it's worth. The banks will lend the buyer the appaised value, and buyer has to contribute the difference if they want to buy.

This is typical in my market!