Appraisal Value Appeal – Reconsideration of Value (ROV) Process

Appraisal values play a central role in home financing. When you’re buying a home, refinancing, or tapping into your home’s equity, lenders rely on appraisals to determine the fair market value of the property. This value affects how much you can borrow, your loan terms, and even whether your loan gets approved at all.

An accurate appraisal ensures fair pricing and appropriate loan terms. But what if you believe the appraisal undervalued or overvalued the property? Fortunately, there’s a process to address this—known as the Reconsideration of Value (ROV) process. Here’s a guide on appealing a home appraisal, from why it matters to navigating the ROV process.

Why an Accurate Home Appraisal Matters

Home appraisals play a central role in financing. Lenders rely on them to set fair market values, affecting:

• Loan terms and approval: Accurate appraisals determine how much you can borrow, the interest rates, and even whether your loan gets approved.
• Home affordability: Overvaluation can make a property harder to afford and potentially leads to future financial issues.
• Access to home equity: An undervalued appraisal can prevent homeowners from tapping into their equity or may disrupt a sale if the buyer’s loan doesn’t get approved.

Inaccurate appraisals can cost homeowners time, money, and even potential opportunities, which is why challenging an incorrect appraisal through an ROV process can be crucial.

What Is the Reconsideration of Value (ROV) Process?

The ROV is a formal process allowing consumers to appeal a home appraisal they believe is inaccurate. According to government regulations, lenders must offer this process to consumers if they feel the appraisal is incorrect. Here’s a breakdown of how it works:

1. Receive your appraisal and disclosure: After getting your appraisal, the lender provides a disclosure outlining how to appeal.
2. Collect evidence for the appeal: Successful appeals rely on concrete evidence, such as recent comparable home sales, market data, or proof of property upgrades.
3. Submit your ROV request: Once you’ve gathered evidence, submit the ROV form provided by your lender.
4. Await response: The lender will communicate with the appraiser and give you an estimated turnaround time. Responses typically come within a few weeks.

Steps to Appeal a Home Appraisal

Step 1: Gather Evidence

To support your ROV, compile credible data that backs up your claim. Key types of evidence include:

• Comparable sales: Find recent, comparable sales (or “comps”) in your neighborhood similar in size, location, and condition.
• Upgrades and renovations: Document any property upgrades or renovations that add value.
• Market data: Show data reflecting any recent shifts in the local real estate market.

Step 2: Contact Your Lender

Let your lender know you want to file a reconsideration request. They will provide instructions on submitting your evidence and clarify the submission timeline.

Step 3: Submit Your ROV Request

Complete the ROV request form and submit all supporting documentation, including comparables and additional evidence.

Step 4: Wait for a Response

The lender will pass your request along to the appraiser, who will review the information. In most cases, you’ll get a response within a few weeks.

Common Mistakes That Lead to Inaccurate Appraisals

Appraisers are human and can make errors. Here are a few common issues to be aware of:

1. Missed comparables: The appraiser may overlook key comparable sales that would increase the property’s value.
2. Ignored property condition: Missing recent renovations or upgrades can lead to an undervaluation.
3. Outdated market data: If an appraiser relies on old market data, they may not capture the true, current value in a fast-moving real estate market.

Potential Outcomes of the ROV Process

Once you’ve submitted your ROV appeal, there are a few possible outcomes:

1. Value adjustment: If the appraiser agrees with the evidence provided, they may adjust the home’s valuation.
2. No change: The appraiser may stand by the original assessment if they believe the new data doesn’t support a change.
3. Further steps: If you’re not satisfied with the outcome, you may seek a second opinion or file a complaint with a regulatory agency.

FAQs About the ROV Process

How Long Does the ROV Process Take?

The ROV timeline varies based on factors like the complexity of the appeal. Generally, it takes anywhere from a few days to a few weeks.

What If My Appeal Is Rejected?

If you disagree with the appraisal result, you have options, including obtaining a second opinion or filing a complaint with a regulatory agency.

Final Thoughts: Take Control of Your Home Appraisal

The appraisal process doesn’t have to be the final word on your home’s value. If you believe your appraisal was inaccurate, you have the right to challenge it. By gathering the right evidence and working closely with your lender, you can ensure your property’s value is fair, protecting your financial future.

If you’re considering an ROV or have further questions, feel free to book an appointment with me or my team—we’re here to guide you through the process and ensure your home’s appraisal is accurate.