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To clarify what Erez says, the Homepath loan doesn't require an appraisal (which most people see as a good thing) but the buyer can chose to buy one if they so choose. It's not as if you're not allowed to have the home appraised if you're worried about value.
Of course, working with a good Realtor when doing your home search can help you avoid this. A quality agent will be able to do a thorough CMA for you on the property to see if the price you are offering is in market value range.
Hope this information helps...
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For Sale: $55,000
For Sale: $40,000