Appraisals: Who’s to Blame for Low Estimates?

Who exactly IS at fault when an appraisal comes to a less-than-desirable valuation? And what IS a home appraisal based on?

Appraisals are typically handled through the mortgage company and appraisers are often selected from a network of appraisers with which the lender company is affiliated. They’re an unaffiliated third party. Often times, there’s confusion because the homeowner is informed about the cost of the appraisal by the mortgage company/banker, when actually there is no mutually beneficial relationship.