Appraisals - What do I need to know, focus on, and Accuracy

[Dean Hamilton]

Hi BP Community! I am new to REI and RE in general. In fact I'm pretty new to BP as well and this is my first "official" post.

Anyway, I have a question on appraisals.  I have a friend who just bought a home and so I asked to see his appraisal thinking I could use it to learn what to look for.  As I am going through it, I see a bunch of stuff here and am confused as to what I need to know about appraisals and what I should be focused on in this report. 

Also, I was talking not too long ago with a mortgage officer who told me that nearly all appraisals come in at asking price, due to some change in the appraisal laws not too long ago.  Can anyone confirm this?  Seems like it defeats the purpose of an appraisal if they are only going to come in at asking price.

I was also wondering what "Cost Approach" was on the appraisal and the difference between that and the "Sales Comparison Approach" and "Income Approach".

Thanks for helping the un-educated become more educated :)