$100,000 over ask and you still lost the bidding war?!? Why isn't the seller accepting your offer? The issue becomes the appraisal of the subject property. The buyer's mortgage company will hire a third party appraiser to assess the value once they visit it in person. This helps them decide how much the property is worth in case they have to sell it in case of a foreclosure. In markets like the one we are experiencing today, this can cause a lot of issues when there is a huge difference between the agreed upon sales price and the appraised value. If you are put in a situation like this, then your realtor should be guiding you on all of your available options. If they aren't guiding you the right way then what can happen is everyone moves on with the seller moving on to find another buyer and you (back at square one!) trying to find another home!