The one thing that looks weird is the 25K in closing costs, even if it included prepaids, that amount is HUGE!!! unless it includes several points. But as Cheryl explained, the house has to appraise for the entire sales price, not just the loan amount.
And, as others note, your house has to appraise for the sales price. In today's market, lenders (and thus appraisers) aren't as generous as they were a couple of years ago, especially when prices were rising month by month. If you've got a good agent, your house is probably priced pretty close to the comps. Could be a stretch to appraise for $10,000 more...though you'd know better than I.
And the problems with these types of transactions--buyers strapped for cash, buying the most house they can afford, hoping the property will appraise for more than it was even listed for--is that they're more prone to glitches on the way to a sale. Not to say that it'd fall through, but there's more of a risk that it might.
Consult with your own agent. And examine/reexamine your own situation and motivation. This might be an acceptable deal for you. Or it might not. Depends on your personal circumstances and needs.
Hope that helps.
There are a couple of possibilties.
When a offer is written with a large amount of cash due back to the buyer, red flags should be raised.
First, your Realtor should have resources to determine if the offer is legitimate.
Secondly, there are transactions where the buyer does ask for a lot of cash back, then after the close of escrow vanishes, with the cash, and the lender has to foreclose. So YOU would not be burned, however the lender might be.
Anyway, get an agent.
Broker, CRS, GRI, ePro
Raving Real Estate
Laramie, WY 82070