What is a Reconsideration of Value (ROV)?
When it comes to real estate transactions, a lot rides on the value of a property. Whether you’re a buyer, seller, or mortgage lender, understanding the true value of a property is paramount.
What happens when you believe the appraisal of a property is inaccurate or unfair? This is where a Reconsideration of Value (ROV) comes into play.
In this blog, we will explore what an ROV is, why it’s necessary, when to request one, and how the process works. We’ll also highlight the importance of working with qualified professionals, such as Akrivis, when seeking a reconsideration of value.
What Is a Reconsideration of Value Appraisal?
A Reconsideration of Value (ROV) is a formal request to review and possibly adjust the appraisal analysis and conclusions of a property based on information not initially considered during the appraisal.
It’s important to note that only a mortgage lender can officially request an ROV on behalf of the borrower. This means that as a homeowner or property owner, you cannot directly request an ROV. You can bring it up to your lender, but the mortgage lender must initiate the official request.
Why Are ROVs Necessary?
A Reconsideration of Value allows you to challenge inaccuracies and prevent discriminatory practices.
Accuracy is paramount when it comes to appraisals and valuations. Inaccurate appraisals can have significant long-term consequences, affecting various aspects of property transactions, financing, taxes, foreclosures, and more.
Appraisals can vary due to the data used, appraiser experience, uniqueness of a property, or even biases. ROVs provide the opportunity to challenge a value if there was a mistake or something fell through the cracks during the appraisal process.
Preventing Discrimination & Bias
Biases can surface during the appraisal process, either intentionally or unintentionally. ROVs also play a critical role in preventing discrimination.
Discrimination can occur when an appraiser’s bias influences the property’s determined value. Appraisers may unconsciously rely on stereotypes or preconceived notions about certain neighborhoods, property types, or individuals. Appraisers may also be influenced by current market trends or sensationalized news reports, leading to an inaccurate perception of a property’s value. Overall, these biases can lead to underestimating or overestimating a property’s value.
By allowing a reconsideration of value, we create a safeguard against discriminatory practices in the industry. They force a third-party review and overall transparency of the process.
When to Request a Reconsideration of Value?
Not every disagreement with an appraisal should result in an ROV request. An ROV should be considered when:
- You Suspect Errors or Inaccuracies: If you believe there are errors or inaccuracies in the appraisal report, such as mathematical mistakes or incorrect data, consider an ROV.
- Comparable Sales Data Was Inadequate: If the comparable sales data used by the appraiser doesn’t accurately reflect the value of your property, you may have grounds for an ROV.
- Bias or Discrimination Concerns: If you suspect that discrimination or bias may have played a role in the value determination, an ROV can help address this issue.
Please note that you should not request an ROV simply because you are dissatisfied with the original appraised value. The process is designed to address specific issues related to accuracy and fairness.
How the ROV process works
If you think there might be an issue with your appraisal, here’s the process you should follow for a Reconsideration of Value.
- Connect with Your Lender: If you have valid reasons to request a Reconsideration of Value, contact your mortgage lender. They will guide you through the process and provide you with the necessary documentation to support your case.
- Submit Necessary Documentation: You’ll need to provide evidence to support your request, which may include documentation of mathematical errors, information on comparable properties, and other appraisals that support your claims.
- Go Through A Third-Party Review: The information you submit is reviewed by a third-party team, which will carefully assess your case and decide whether an adjustment to the appraisal is warranted.
How long does a reconsideration of value take?
The duration of a Reconsideration of Value (ROV) process can vary depending on several factors, including complexity of the case, availability of documentation, responsiveness of those involved, backlog, and more.
Consult with your mortgage lender or the entity handling the review to get a better understanding of the expected duration. They can provide you with more specific information about the timeline and how long the ROV process will take.
Work With The Valuation Experts
Given the complexity of the ROV process and the importance of a successful reconsideration, it’s critical to work with knowledgeable and qualified professionals who understand the intricacies of property appraisals.
Here at Akrivis, we can provide valuable expertise and assistance throughout the process and get you an accurate property value in 5 days.