You have made an offer on a Newport Beach property for sale, and part of the terms and conditions of the sale include that you will be obtaining financing on the property.
As part of the lending process, an independent Appraiser will go out and value the Newport Beach property for sale. If the appraised value comes in less than the agreed upon purchase price, you will have some decisions to make.
You can ask the seller to lower their price to the appraised value (this is what I would recommend for my buyers). And in the event the sellers do not choose to decrease their price, then you do not have to purchase the property.
There are occasions where a buyer may bring cash to close the sale, however this is not something that I would recommend for my Newport Beach home buyers. The ideal scenario is when the sellers agree to lower their price, and that way you will be sure you are not overpaying for the Newport Beach home for sale.
Even with all cash buyers, I recommend that they obtain a professional independent appraisal, and have that as a contingency of the home purchase. That way, it ensures that the buyer is not overpaying for a home (even if they have cash).
If I can answer any questions about the Newport Beach home buying process, please contact me.