So how does a young couple get a mortgage for a house $100K over asking price? Oh, do the appraisers have comps, because other houses that also “sold high” ?
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In a case I know of (in NJ), the buyer’s realtor had connection to a mortgage broker, with their help they fought the mortgage appraiser. The outcome was “some” adjustment in favor of the buyer - but basically the end result was: PMI
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There are “happy” appraisers and “sad” appraisers, but when the appraisal comes in lower than the selling price, there’s an old saying of “we’re just a agent’s commission apart.” 
Other options, not an exhaustive list by any means, is that the buyer may have to increase their down payment and/or seller kicks in some or all non-recurring closing costs.
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Emphasis on old!
As in - the good old times, when offers weren’t 100K above asking/appraisal.
Hard to bridge that with commission discount.
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$100,000 over asking? Depends on where you live. Anyway, 5% commission on a $2 Million house is well, you know. And sometimes, “pain” must be felt on all sides.
Well asking price is not the same as appraisal value. Since I asked my realtor similar questions, I know these answers now.
The mortgage company will require the appraisal to cover their mortgage amount. So if they put down a large deposit and take out a smaller loan then the buyer will be fine. (so for example if they buy a house at 500K but it only appraises at 400K, and they are getting a loan for $300K all is fine.)
Some of the offers we received included terms for an appraisal gap. Basically, the buyer promising to add more cash to fill the gap.
In today’s market, it is very had to get reliable comps to determine value. When inventory is so low, there may be only a few houses that sold in the past months, and they may not be similar in size to yours.
Finally, an appraisal to secure a mortgage is supposed to reflect the current fair market value of the home. Given my 12 offers, all well above my asking price, the fair market value of the house is far above my asking price, and closer to the offers I received.
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Congratulations, kiddie!!
Just one twist - the fair market value is not based on YOUR offers received, but what comparable homes in your area actually had sold for in the PAST. The fortunate selling price of your house will help push up averages over time for subsequent homes coming on the market.
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