Wagner, you and I both know that the value of something, the value of anything, is based on TWO things.
1) What someone is willing to SELL for.
2) What someone is willing to BUY for.

The Bank is not setting the price for the home, land, etc. The bank is simply looking over the deal, set by the seller and accepted by the buyer, to ensure that there is no blatant misrepresentation. But there is always room for interpretation.

In Los Angeles, 3 parties can look at the same exact 1960's house.
Party 1 thinks it's a land value, tear down.
Party 2 thinks it's got good bones, but needs modernization
Party 3 thinks it's a charming old house and is fine, as is.

The point is, value is SUBJECTIVE. And it's not the banks job to decide the price on the home. It's only the banks job to decide if it wants to assume some risk, assuming the debt, based on stated finance and the apparent value of a home.

So regardless if it's a structure or land your buying, it is now and will always be CAVEAT EMPTOR (Buyer Beware.)
And should the housing market go down for any reason, it's not the banks responsibility to assume the loss, while if it goes up, YOU assume the gains.

Houses are a commodity. Commodities go up and down. The risk is always on the buyer (which unfortunately is now being transfered onto the bank.)
But an appraisal means:
Today, as of right now, based on the seller, based on the buyer and based on comps in the area, THIS IS WHAT the property is worth..
-- But that can change TOMORROW.

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"When two people agree on everything, one of them is not necessary" - Arliss