Appraisals: Do you think they give a fair value most of the time

[Michael Corso]

When getting your appraisals done do you think they usually give a fair value, What is your experience ?

[Michael Noto]

Speaking very generally I find that when I am working with clients purchasing a home who are well qualified, the appraisal generally comes in right at or just over purchase price. Remember, appraisers have a copy of the purchase & sale contract furnished to them before doing the appraisal.

On cash out refinances, the home usually always appraises for less than you think in my experience with my own deals and what I hear from others. Thus making it so the borrower has more "skin in the game".

Is this a ittle bit conspiracy theory-ish on my part? Probably. Do I believe the above to be true in almost all cases? Unfortunately, yes.