The appraiser wouldn’t value the home at $1M JUST BECAUSE that was the agreed upon price.
You are correct that they don’t value the furniture.
Buyers have no idea what the property is really worth today. There are cases where an offer is made, but the property doesn’t appraise for the “agreed upon price”
Unless buyer comes in with cash, it’s a dead deal.
On a purchase,lenders lend based on lower of appraised value or purchase price.
On a refi, they will lend on appraised value, (even if higher than purchase price)
There are lenders that will consider a cash out refi one day after closing on a purchase loan.
