okay, this question isn't about investing. It's about buying a house for my family. 

It's my first purchase-ever. 

She said this to me regarding a house that is seeking for 140k but I'd zestimated at 111k.

"I also think on list price, they may not have enough in their price to give full closing costs....remember, it has to appraise with closing costs included....so it must appraise well, and they need to be selling it high enough to have room in their price....."

Can someone explain this to me? A broker, real estate agent, or anyone. I'm having a hard time understanding what she means. Our loan is for 185k. Why couldn't we talk then down? 

Is it that the appraiser might find the home isn't worth what they want? If that's the case, should we look for homes that match or fall below their market value? 

Of course I don't want the house after seeing the selling price vs market value estimate but I'm just wanting to understand what she means so I can be more aware when looking at homes. She sent this to me btw.