A Reconsideration of Value, or ROV, is the process in which you file an appraisal value dispute. The Reconsideration of Value comes into play when an appraiser’s opinion of value is not agreed upon by the parties involved in the transaction.
The purpose of this blog is to educate on the ROV process and to coach how to properly submit an ROV through Class Valuation. The ROV is a valuable process, where the consumer has the opportunity to supply evidence to support their belief that the appraisal report is incorrect. Since only one ROV is permitted per appraisal report, it is important to use best practices in order to successfully place the dispute, including:
- Being sure you understand what an ROV is and how to implement your reasoning for change in value
- Supplying the data to support your reasonings should be well thought out and researched
- Having knowledge of your current market area will assist with your appraisal inspection
To assist in the process, Class Valuation will look over the supplied evidence before sending to the appraiser. If we find that the supplied data is outside the market area or that the comparables are not significant, we will advise before processing to allow more time for research. Our focus is to provide high levels of service while also following industry guidelines.
Supplying alternative sales that are superior in condition and GLA (gross living area) are the most common sales to be denied for submission into the ROV. Best practice is to supply alternative sales that are similar to the subject property in terms of square footage and condition ratings. The more similar the alternative sales are to the subject property, the higher the chance of receiving a change in value from the appraiser. It is very important to keep in mind that only four closed sales can be sent to the appraiser. If more than four closed sales are supplied, a request will be sent back asking you to narrow your submission down to four sales that you wish to have sent to the appraiser.
All ROV requests submitted before 3:00 p.m. EST are handled the same day, with those submitted after 3:00 p.m. processed the following day. Most files that come through with a new ROV request are looked at within 4 hours and are either processed or suggestions are given to the client for a more positive result. On average, the entire process should take less than two business days. The team monitors the revision request sent to the appraiser and updates the client through every step of the process.
There are many factors to consider when submitting a Reconsideration of Value request, which can be overwhelming. This is why we have created a pdf for you to refer to when placing an ROV with Class Valuation. Fill out our short form to download the pdf.
About the Authors:
Michael Holmes is the Director of Client Services at Class Valuation. He is passionate about customer service, and wants to ensure the best client experience through constant communication and care. He can be reached at (248) 220-2536 or by email at mholmes@classvaluation.com.
Kimberly is the Escalations Team Lead at Class Valuation. With extensive industry knowledge and attention to detail, she can be trusted to handle your complex quality-related concerns. Both clients and appraisers alike can be confident their concerns will be addressed efficiently. She can be reached at (248) 385-0180 or by email at knoon@classvaluation.com.
