Question on Appraisals

[JML1976]

What is the name of your state? MA

I am in the process of refinancing and debt consolidation. The bank I am dealing with did an electronic appraisal which came in with enough money to refinance and payoff all the debts and closing costs. The bank is now doing a physical appraisal of the house. They stated that sometimes there is a difference in the two numbers but they would obviously have to use the physical appraisal number. (The electronic appraisal came in at a very high number approx 50K more than the average selling prices in our neighborhood -basing that on the last 3 sales in our area)
We dont have the number from the physical appraisal yet. Im just trying to figure out what to expect.
Does anyone know what factors would create such a discrepancy?
And does this happen often where the numbers would be different?

The difference usually comes in after they take a look at your house. It may be higher or lower. The electronic ones come from public records and are based strictly on dollar amounts recorded in the assessor/collector office.

[mandik]

Electronic Appraisals are not appraisals, they are very inaccurate sometimes. A lot of people don't want to pay for a real appraisal, but it isin the best interest of everyone involved to have one done.

[HUD-1]

Appraisers make adjustments for things like condition, size, sales concessions and location that are not going to be picked up by an electronic estimate.

[HomeGuru]

Also there may be no adjustment for recent changes to market conditions etc. in a fast paced seller's market or depressed localized economy.