Placed in the question is the statement 'secured loan amount of $100,000. The subject property to be purchased is $40,000.
If a buyer approached you and stated, "I'm qualified to buy a $100.000 house" and makes offers on $40,000 instead, you don't think that just might call for a change in strategy? -
A full service business model based on $40,000 purchases is destined to go out of business.
As others have stated, and I agree, you should find another agent.
Be sure to advise your new agent you are looking to make a $40,000 purchase.