A home appraisal is a crucial part of various financial transactions and situations involving your property.  It’s essential to understand the basics of the appraisal process.  It’s possible you may believe the appraisal result does not accurately reflect your opinion of the property’s value.  In such cases, a Reconsideration of Value (ROV) can be requested.  A ROV is a formal process to review the appraised value based on new or additional information.  This article will guide you through the Reconsideration of Value process.

As a side note, the complex process of a Reconsideration of Value can be potentially avoided by being proactive in the appraisal process from the outset.  Before the appraiser visits your property, gather relevant information and data about your home and the neighborhood.  Provide the appraiser with documentation of recent upgrades, improvements, and any other details that could impact the value of your property.  Share information about recent sales of comparable properties and any neighborhood trends or developments that might influence property values.  By providing accurate and comprehensive information upfront, you may reduce the likelihood of needing to request a reconsideration of value later in the process.

Step 1Review the Appraisal Report Thoroughly

Before requesting a Reconsideration of Value, make sure to review the appraisal report very carefully.  The details in the report may help you better understand the appraisal process and final result.

Step 2Communicate with Your Real Estate Agent or Lender

If you’re working with a real estate agent, inform them about your concerns regarding the appraisal.  They can help you navigate the process, gather supporting evidence, and communicate with the lender or appraisal management company (AMC) on your behalf. If a real estate agent is not involved, reach out to the lender or AMC to ask about their process for a reconsideration of value.  Any requests for consideration must be submitted by the client who is typically the lender or AMC for lending transactions.

Step 3Gather Supporting Evidence

A solid case for Reconsideration of Value should be prepared. Evidence needs to be gathered that supports the claim.   This evidence should be relevant and directly related to the factors that impact the property’s value. Stick to the facts and data.

Step 4Contact the Lender or Appraisal Management Company

Once you have reviewed the appraisal report and gathered relevant and supporting evidence, contact the lender or appraisal management company (AMC) that ordered the appraisal.  Appraisers must maintain their independence and impartiality, so it’s crucial to communicate with the lender or AMC.  Submit a formal request for Reconsideration of Value, explaining your concerns and providing the evidence you’ve collected.  The lender or AMC will review your request and determine whether a reassessment is necessary.

Requesting a Reconsideration of Value in a home appraisal can be a complex process.  However, by understanding the process, you can evaluate your options.  Carefully review the appraisal report, communicate with your agent or lender, gather supporting evidence, and communicate with the lender or AMC to work towards a resolution that accurately reflects your property’s worth.