An appraisal company has no financial incentive to "optimize" outcomes for either the seller or the buyer -- their fee isn't a percentage of the sale (or asking

An appraisal company has no financial incentive to "optimize" outcomes for either the seller or the buyer -- their fee isn't a percentage of the sale (or asking) price, but is a flat fee, depending on the kind of appraisal being done. The "algorithm" here is based on "comparables": look for homes in the same or nearby neighborhoods that have sold recently and are as similar to the current home as possible and record what they sold for, making adjustments based on differences between the homes (e.g., if the comparable home is bigger, has another bedroom, comes with newer appliances, etc., adjust its price down; if the home being appraised is the one that's bigger or has the spiffy kitchen or pool or what have you, adjust its price up).