well, first of all - what is the list price?
There is a huge difference between a 300,000 listing appraising out for 200,000.... and a 1.2 million dollar house appraising for 1.1
But - the list price is irrelevant.
You ask...........Is it common for a house to appraise out for less than the list price?
Yes, it happens.....but that's not the real issue....more importantly, does it appraise out for the SALE price.No one cares about the appraisal vs the list price.............unless it sells for full asking.
Finally, if the house doesn't appraise out for the agreed-to sale price, most likely the buyer will not be approved for the loan (especially if there is a "satisfactory appraisal" contingency in the contract)