I believe this is correct. And even if the buyer is willing to pay the price, the bank may not be willing to offer the mortgage over the appraisal amount. Cash

I believe this is correct. And even if the buyer is willing to pay the price, the bank may not be willing to offer the mortgage over the appraisal amount. Cash is king, but not all offers for the same price are equal, such as VA loans with requirements and such. Pre-2008 crash, lenders could pick their appraiser and it was easier for them to have the appraisal match up with the asking price. The lender was likely selling off the loan, anyway. Appraisals are now assigned to a pool. Doesn't mean there are not any shenanigans though. They all still know each other.