It's possible they were only approved up to a limited amount for a mortgage, and went to the top of that amount, or left some room for negotiation, and the top

It's possible they were only approved up to a limited amount for a mortgage, and went to the top of that amount, or left some room for negotiation, and the top minus 5% came out to 699. Cash could also be a factor here. It could also be that the buyer couldn't stomach paying 700 for the home, so they used the sales strategy on themselves to justify the price.