The short answer: YES. I recently sold one of my REO listings that was under contract for $176,250. By all "normal" sales this was a screaming deal for a 2,200 sq ft, 4 bedroom home built in 2006. However, there had been a run of REO's in the neighborhood. As we know, appraisers always try to compare "like to like."
The appraiser found 3 other "sold" REO properties and one active REO. She said she could not justify a sales price of more than $176,000. That's a $250 difference. I have never seen an adjustment in the sales contract price required for that small of an amount -- in almost 9-years as a Realtor. Do you think appraisers have been under scrutiny (that was a rhetorical question)?
However, in this case it may have been the particular appraiser having a bad day. She also stated the dish washer and stove had to be repaired or replaced for this FHA loan because they did not work. The fix: turning on the circuit breakers for the appliances. Hmmmm ....
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