These new government rules force lenders to use out of market appraisers and force appraisers to use short sales and foreclosure sales as comparables. These are not open market, willing buyer-willing seller sales and depress prices. The rules also limit the range of comparable sales which often is impossible in some rural areas.
These rules do not comply with generally accepted appraisal proceedures and change the valuation model. Dr. Afred Ring, who taught me at U of Florida and wrote the textbook, used to say when his students would tell him that they couldn't find a comparable sale, "have you looked in China?" That was his way of teaching that you could always find a comparable sale if you looked hard enough.
Real estate appraisal is an art not a science and relies on the judgement and experience of the appraiser.
http://online.wsj.com/article/SB10001424052748704853404575322993513715532.html
http://www.usatoday.com/money/economy/housing/2009-07-14-home-appraisals_N.htm
http://www.bmandg.com/Articles/ArticleView/tabid/94/smid/426/ArticleID/112/reftab/57/Default.aspx
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