LaPlante Appraisals' Blog

I just want to put it out there, no one is perfect. 

As a homeowner, agent or borrower, sometimes you may disagree with sales used  and/or opinion of value in an appraisal report. Each individual party is looking at different aspects of the transaction and represents different interests. Most agents have tried at least once, to send in a Reconsideration of Value (ROV). Agents have a variety of experiences with these, some good, some bad. We'd like focus on what makes a good ROV. 

Fist off, the point of an ROV is to provide ADDITIONAL information that was not included in the original report--most commonly: improvements and/or sales/listings. 

When submitting a ROV, please considered reviewing the report beforehand. Many times we received a ROV with sales that are already included in the report. Most lenders will review the submitted ROV to make sure this is not the case. However, we do understand as the seller, you do not get a copy of the appraisal report unless the buyer provides you with it. Sometimes an agent or seller will complain the appraiser "rejected" the ROV. As appraisers we are required to review ONE ROV per assignment if asked. If your ROV was not addressed, it was likely turned down by the underwriter or lender--not the appraiser. 

Most of the time the appraiser and the agent/borrowers are looking at the same information sources. However there are times, that due to how things are labeled or listed in the MLS listing site, they did not get pulled in the appraiser's initial research. Therefore there are times that additional sales do make it into the report and values can change. But sometimes the additional sale(s) do solidify the original opinion of market value. 

One of the most common challenges we find in the Maricopa County is real estate agents listing the GLA including the guest house square footage. For example, let's say an appraiser is pulling sales with a square footage between 3,600sf and 4,200sf. Take a look at the MLS listing below: 



One would assume the GLA doesn't include the guest house, however upon further research (calling the agent, assessor records, sketch, etc.) it is determined the comparable is actually only 4,072sf and the guest house is 409sf. Therefore this could potentially be a comparable, however was missed in the appraiser's research of 3,600sf and 4,200sf due to the agent including the guest house in the GLA. See Monsoon/Assessor image below. 



Another thing to remember: although you think a sale is comparable, doesn't mean it is. Appraisers go through a lot of training and classes, analyzing data differently than some real estate agents. Just because you think it's comparable doesn't mean it is in the appraiser's mind. If you happen to have any further questions about how we analyze data and determine market trends, we would be happy to sit down and talk to you about it. Reach out to us here. We are passionate about appraisals and analyzing data to create the most credible and supported report. 

Just know, even if the appraiser does not make changes to the value, you have a right to ask and pay for another appraisal. Yes it will cost you, and could potentially delay closing, but there is a chance another appraiser determines a different opinion of market value.  You have choices. 

Just remember...no one is perfect.