Appraisal Reconsideration of Value

Reconsideration of Value Overview and Instructions

The appraisal value of a property is a crucial aspect of your mortgage application. You will receive a copy of the appraisal report when it is completed. Upon review, if you believe the report is inaccurate, deficient, or reflects discriminatory practices, you have the right to request a Reconsideration of Value (“ROV”).

For questions of assistance with a Reconsideration of Value, fill out the short form below.

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What is a Reconsideration Of Value?

A “Reconsideration of Value” is a request to an appraiser to re-assess the appraised value of a property due to potential appraisal reporting deficiencies, inappropriate selection of comparable properties, or based upon additional information the appraiser should consider.

When to Consider a Reconsideration of Value.

You might consider initiating this if:

You believe the appraised value does not accurately reflect the property’s true market value.
There are errors in the appraisal report.
The appraiser did not consider relevant information about the property or comparable properties.
If you suspect that personal characteristics or neighborhood demographics may have improperly influenced the appraised value.

How to Initiate a Reconsideration of Value.

Step 1: Contact Your Lender. Contact your lender representative expressing your intent to initiate an ROV, or if you need clarifications or appraisal corrections unrelated to the value stated in the appraisal:
Step 2: Gather Supporting Documents. For this step you will gather documents that support your claim. This may include recent sales of up to five comparable properties, new improvements to the property, or any other relevant information that was not considered in the initial appraisal.
Step 3: Submit Documentation. Submit your documentation and ROV request by emailing your Loan Officer or the Summit Mortgage Appraisal Desk, appraisaldepartment@summit-mortgage.com.
Step 4: Review. Your lender will review your request and the documentation provided.
Step 5: Determine Outcome. Once the review is complete, the outcome will be communicated to you. It’s expected the processing time will take 10 business days. If the reconsideration is successful, the new appraised value will be used for your loan.

General Guidelines of Acceptable Comparable Sales

Comparable sales are recent closed sales of similar properties that appraisers use to help determine the fair market value of a subject property. The appraiser is responsible for selecting the best and most appropriate comparable sales based on a variety of factors. Here are some general guidelines that appraisers follow that should guide you in this ROV process:

Comparable sales should be recent sales that have closed no more than 12 months before the completion date of the appraisal report.
Comparable sales should be near the subject property, and ideally located in the same neighborhood. If there are not enough recent comparable sales in the same neighborhood, the appraiser may select comparables from other nearby neighborhoods.

Comparable sales should have similar physical characteristics to the subject property, such as the number of bedrooms and bathrooms, square footage, style, and condition. This does not mean the comparables must be identical to the subject property, but they should appeal to the same buyers.

General guidance on bias or discrimination

It is improper for an appraiser to reach a conclusion of property value based on characteristics such as race, color, religion, national origin, gender, marital status, familial status, age, receipt of public assistance income, or handicap. Appraisal discrimination can result in a home being undervalued or overvalued.

Please note that only one Reconsideration of Value is permitted per appraisal and initiating an ROV does not guarantee a change in the appraised value. The outcome will depend on the strength of the supporting documents you provide and the result of the review process.

If you have any questions or need further clarification, please contact your lender representative.

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