Thread: Bank is requesting "desk appraisal" before offer accepted?

Hey guys - thank you in advance for any help you can provide.

I'm pre-approved at several places around town and I've found the house I want (listed as an REO) and have put an offer on it. My agent is a close friend that only practices part time. I currently have 20% to put down but will go FHA so I have cash on hand from the get go. Here is the run down:

1. Found the house I wanted, thought it was listed at a very low price and put in an offer for 3% over the list price 2 days after it was listed.

2. The selling agent came back to me the very next day, stated that 10 offers came in, and that I was 1 of 5 to get a 'Best and Highest' counter offer. This offer was of course, blank and basicly asked 'What do you REALLY want to pay for this house?'

3. I countered with an additional 5k and agreed to pay closing costs. Again, a very good price for this house as the comps have pointed to the house being worth +50k street value over my offer.

4. The day my 'Best and Highest' was to expire my agent called the selling agent and was told the following over the phone: 'Your client is 1 of 2 that the seller is contemplating going with and they would like you to get "desk appraisal" before your offer is accepted'. My agent, never having heard of this before was slightly dumbfoundedand and told them we would let them know our intentions tomorrow - which was a ploy to try to figure this move out.

I am willing to cough up the cash for the appraisal if that means I'll get the house, but from everything I've read online this seems to not be the norm. Can anyone advise as to why they would ask me to do this and is this pointing to shady dealings? What should my next move be?

Thank you!