aggie appraiser said:
"So that seems to prove what the house is worth."
If you have a cash buyer, it would prove it. If you have a buyer who has the financial ability to make up the difference between the appraisal and the sale price, it would prove it. If you have a buyer who can't make it happen, it doesn't prove anything.
I've seen contracts written stating that the buyer will bring extra cash to closing if the house appraises for less than the sale price. If I had a question about the house appraising, especially if I took a bid for more than the sale price, I would make sure it was in the contract.
In this case, I would make sure the $4,000 over the list price was going to be covered by the buyer and that they knew up front that there wouldn't be additional negotiations if the appraisal came in at the list price.
To add to my prior comments. Imagine this scenario.
You are tasked to appraise a 3 story townhome in the most exclusive neighborhood in your county. There are 4 sales in the prior year ranging from $675,000 to $725,000. All the units are very similar in size, condition, and quality, and they are all the same age. There are minor differences in how they are oriented. Some face traffic, some face a small park. These sales indicate a market value of $700,000.
The townhome you are appraising has a contract price of $800,000. There are no other 3 story townhomes within 10 miles.
Who in their right mind is going to lend 80% of $800,000 on a townhome that is probably worth $700,000?
To make sure the investment is sound, the lender is going to lend 80% of the appraised value ($700,000), and the buyer is going to put the rest of the money up at the closing table. Lender puts up $560,000 and the buyer will have to provide $240,000. The deal can be done, but the buyer is going to have to assume a larger portion of the risk.
Hopefully, this somewhat real example illustrates why things are the way they are.