My New Blog

As a homeowner looking to refinance or purchase a new property, you understand the critical role of a home appraisal in the process. However, there might be instances when you feel the appraisal has undervalued your home. In such cases, you have the option to submit a Reconsideration of Value Request (ROV) to challenge the appraisal and potentially secure a more accurate valuation. In this blog post, we'll walk you through the steps of the ROV process and highlight the importance of recognizing the expertise and impartiality of appraisers compared to real estate agents and lenders.

Understanding the ROV Process

Review the Appraisal Report: Carefully review the appraisal report for discrepancies or errors that might have influenced the final valuation. Note factors like property size, number of bedrooms and bathrooms, recent renovations, and comparable sales used in the appraisal.

Gather Supporting Evidence: Strengthen your case by collecting relevant documentation that demonstrates the true value of your property. Include recent home improvements, upgrades, and comparable sales data of similar properties in your neighborhood that may support a higher value for your property. 

Communicate with Your Lender: Reach out to your lender to discuss the possibility of initiating an ROV. Understand the lender's specific guidelines and requirements for submitting a reconsideration request.

Drafting and Submitting the ROV

Write a Comprehensive Reconsideration Letter: Maintain a respectful and professional tone while stating why you believe the initial appraisal was undervalued. Provide detailed evidence to support your claim, including photographs and proof or recent improvements that may have been overlooked by the appraiser.

Submit the ROV: Send the ROV and supporting documents to your lender as per their guidelines. 

Appraiser's Expertise vs. Real Estate Agents and Lenders

While real estate agents and lenders play essential roles in the buying and refinancing process, it's crucial to recognize that they may not be impartial when it comes to property valuation. Their focus is on facilitating the transaction and achieving the best outcome for their clients, rather than providing objective appraisals.

Appraisers, on the other hand, are licensed professionals with specialized knowledge in determining market value. Their evaluations are unbiased and consider a wide range of factors, ensuring an accurate assessment.

Conclusion

An undervalued home appraisal can be frustrating, but with an ROV and the support of an experienced appraiser, you can seek a fair valuation for your property. While real estate agents and lenders offer valuable insights, their expertise may not match that of professional appraisers. By understanding the differences, homeowners can make informed decisions and secure accurate market valuations for successful real estate transactions.