system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: Why do home purchase appraisals come in at the exact purchase price agreed to by the seller / buyer?

We made an offer on a home and we're through the inspection / attorney review and the appraisal comes back at the EXACT amount we offered. Now, I'm the buyer here, so right or wrong, I feel like we overpaid to win the bid. Why does this happen? How on earth does it appraise to the exact amount?
gpt
Buyer and seller have agreed the home is worth $X… so technically that should be “market price.” The appraiser is trying to find justification that the price is ballpark. They’re not trying to kill a deal, they’re trying to tell bank issuing loan, “yeah, it’s worth about what the price agreed to is” so bank knows loan is properly collateralized. So if it’s not wildly off from what comps suggest, the appraiser is trying to say that the deal price is an appropriate price. They’ll try to hit the exact sale price or close to it if it’s realistic appraisal, and only vary if there is something way off on price.