Will the price be based on the appraisal value? NO - the "loan amount" will be based on the appraisal.
But having been involved in a couple of transactions where an offer was made and accepted by the buyer (under contract), if the "higher" offer comes after a lower offer is accepted, their can be considerable legal raminifications if the seller tries to switch offers. If this is the case, contact an attorney.
You need to have an appraisal contingency in your offer. Otherwise you could lose a lot as you might be forced to buy what you can not afford to buy.
I do not understand the idea of paying more than the buyer is asking for. But if you want to the only one it hurts is you and your wallet. Just do not pay more than a property is worth. It is likely enough to find prices drop more without overpaying now.
Yes, you can bid more than the listing in fact in todays current competitive market it's a given however you and your agent need to do your research namely the sold comparables to see what other properties similiar to this property is selling for however as mentioned by the other agent on this posting you will not know until after a fully executed contract has been signed by both parties to the transaction. That is why it is so important before you sign anything upon being accepted to read the sellers contract and addendums to look for language that may state that if you overbid you could be responsible for the overage and the seller may not negotiate to the actual appraised value. Is your agent going through this process carefully with you?
Al Espinor Jr., GRI-Realtor
7301 Pacific Ave.
Stockton, Ca. 95207
No, the price will not be based on the appraisal. The appraisal comes after there's a ratified offer. The asking price is determined by the seller, hopefully with input from the seller's agent, on the value of the property. The amount a buyer offers is based on the value of the property and his/her desire to purchase it. If there's an agreed-upon price, the appraisal establishes the amount that the lender will lend on the property.
The risk in someone offering more than the listing price is, if it's way out of line the home won't appraise for the proposed purchase price.
Hope that helps.