Mutsy-The same is true when you buy a home. If the price is firm that means that there is no negotiation regarding the price and you should expect to pay the asking price noted if you want to buy a home.
If you buy a home with the firm offer example you also have an opportunity to a contract review beforehand as well as inspection right along with an appraisal clause.
The inspection right really allows for you to bow out should the inspection reveal that the home’s repairs will be too costly and the appraisal clause allows for you to void a contract in which the property did not appraise for the amount that the seller is asking.
This happens more often than not because of the high amount of foreclosures. Many people pricing homes really do not know what the true market value is because the market has been depressed for so long.
Also, this will discharge of contract is required in that case because a bank will not finance a property for more than what it is worth.