I just watched someone pay 30k more for a house than they needed to.

House appraised low (crappy, really low appraisal). Seller agreed to drop price $30k below contract price just to get the deal done. This still required the buyer to bring $25k out of pocket beyond his downpayment.

Buyer had the means to do it, but didn't want to...

Instead, buyer gets a different loan with a new appraisal at the original contract price (which, remember, was $30k more than the price my sellers would have taken, with the bad appraisal).

All because they guy wanted to finance it instead of pay out of pocket. Putting that $25k extra is a guaranteed return of 5%, which is much better than 1% sitting in the bank. And LOSES $30k of equity.

Might be the dumbest move I've seen in a long time. This is what happens when the RE market gets wobbly.