That is a major misconception that many have.  In reality, that defines SALE PRICE (same as a BPO or CMA does), and SALE PRICE does not extablish FMV of that property.  The definition of FMV (or MV), established by FIRREA (Financial Institutions Reform Recovery and Enforcement Act of 1989), and approved and accepted on the State and National level of Appraisal Boards, Appraisal Institute, Appraisal SubCommittee, Appraisal Foundation, GSEs, and Lending Institutions is:

"The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer ande seller, each acting prudently, knowledgeably and assuming the price is not affected by under stimulus.  Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised; (3) a reasonable time is allowed for exposure to the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represent the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale."  -  USPAP (Uniform Standards of Professional Appraisal Practice) extends the definition to include:  "A type of vaqlue, stated as an opinion, that presumes the tansfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal."

To determine the actual FMV, one needs to incorporate the use of the sales comparision approach, cost approach, income approach, or a combination of any or all, and factor in things such as true comparable properties, comparable listings, LPSP ratio, time adjustments, depreciation, replacement cost, adjustments for sqft, condition, location, land/lot size, amenities, concessions, market demand/acceptance, absorption rates, external-functional-economic-environmental obsolescence, regression analysis, market conditions and trends, contract analysis (property rights being transferred), to name a few.

FMV was determined by the banker/appraiser.  The banker put a number down on a piece of paper and the appraiser miraculously came up with same exact number.  Its like they were psychic or something.

A misconception?? Appraisers don't have the market cornered on crystal balls. All that blurb, only to justify one's employment value. It isn't complicated.

It's really a simple process. One doesn't have to use fine tooth comb to go through all the numbers and what happened here and what happened there. It isn't rocket science. I'm glad I learned my misconception, it has saved/made me valuable time and money.

I enjoy doing cash deals, it's cuts to the chase without all the unneccessary complications and expense.

You didn't answer my question - but that's alright.   Bank appraisers are employees of that financial institution.  As an employee, they are expected to perform their job duties as any other employee since they are being paid wages to do so and are receiving benefits (health-medical-dental, retirement, 401K matching, free checking, profit sharing, paid vacations, employee discounts, etc).  By not doing so, as would any other employee of any other employer, they reduce their possibilities of advancement, wage increases, or risk termination.

I worked over 15 years for a major financial institution quite some time ago - AVP, Trust Off, CPA - I know corporate procedures.  My wife works for a major financial institution, however, as an independant fee appraiser I do not do business with them - conflict of interest - therefore, being independant, I am able to provide clients an accurate unbiased opinion of value of real estate with no vested interest in the outcome of the transaction, such as commissions. 

No it isn't rocket science and, OK, it IS really simple, so now we can do away with the Appraisal Foundation and requirements to have appraisals for any federally funded real estate transaction and delete all other laws and requirements set forth to protect the consumer, such as the Arizona Revised Statute 32-3603, and ignore the fact that deregulation of the mortgage/housing industry allowed for lenders to develop mortgage loans that provided maximum profit and give back total control over determining property values to the NAR and everyone else that has a vested interest for profit or commissions.

Oops!  Gotta go!!  I need to rub my magic lamp to let the Genie out for a teleconference with my Astrologist, to fudge the value on an assignment that's been sitting on my magic carpet for a couple of days!