If I understand that section correctly, they are pointing to a counter-offer likely based on a received appraisal that isn't satisfactory for the amount requested. Counter-offer made for lower loan amount, for instance. In that situation, their commentary makes perfect sense.
I don't believe you can look at it the same way when you simply just don't have an appraisal yet. Now, I can see it being 'closed for incomplete', but that's entirely up to how you underwrite. Some LO's I know will just wait on the customer and be sitting on ready once they are ready to go forward with an actual deal.