Appraisal During Escrow Was $175K Above Purchase Price

First time home buyer here. We bought our home last year on a conventional loan with 5% down. The appraisal during escrow came in $175k above the purchase price.this would put the equity above 20%. since banks choose lowest of the two, we couldn’t remove PMI then.

Has anyone been in a similar situation before? How soon were you able to remove PMI?

What are the chances this is could be a mistake and the value will be off if we were to do an appraisal again?