Appraisal Problem

House sell for what willing buyers are willing to pay willing sellers. 

When prices were rising appraisers actually started to think home values had to rise. 

Every appraiser knows if they do not "make the value" they may find less work from that lender.   I do not think any appraiser should know what a buyer is paying for a home.  It would be much more fair to all if the appraiser looked at a home and determined its value without knowing what the buyer was paying.

The main reason that would be more fair is the appraiser would not know what number he or she has to come up with to allow the lender to fund the loan.

If things were run that way for the past five years we would not be where we are now.  Mortgage companies would not have been able to make many of the loans that went bad and there would be less short sales where part of the problem was overvalued properties.