The Journey to Fair Valuation: Strategies for a Successful Reconsideration of Value

​​​​

1. Provide Insightful Information Upfront
   Offer the appraiser insightful information about the property, including a list of updates, improvements, or changes, along with a timeline of when they occurred. Provide floor plans, property surveys, and any other information you want the appraiser to be aware of. This information can be shared via email before the appraiser steps foot into your home or in person during the appraiser's personal inspection.
    

2. Provide Comparable Information Upfront
   Consider supplying recent, similar comparable sales for the appraiser to consider. Focus on sales in proximity that are similar in age, size, condition, lot size, and overall appeal to the market. Properties that have sold and settled can help the appraiser determine an opinion of value, while sales currently active in the market or under a current agreement can support current market conditions.
   
   Investing time and effort in providing pertinent information before the appraisal not only ensures a more accurate initial valuation but also cultivates a positive relationship with the appraiser, laying the foundation for potential collaborative discussions and a smoother reconsideration process, if needed, down the road.
    

3. Review the Appraisal Report & Identify Errors or Oversights
   Thoroughly review the appraisal report to identify key factors that may have influenced the appraiser's decision, such as current market conditions, property condition, and comparable sales. Additionally, comb through the report for inaccuracies regarding both the subject and comparable sales, including size, condition, features, and sale prices. Inaccurate information could skew the results of the appraisal.
    

4. Submit a Formal Request
   Contact your lender or appraisal management company (AMC) with your request for a reconsideration of value. Clearly state the reasons for your disagreement, including the errors and oversights found during the review of the appraisal. Additionally, include any settled sales you believe to be better suited for comparison. This may or may not include sales you supplied to the appraiser at the outset of the process. 
   
   
   
   
   
   
   
   According to the Fannie Mae Selling Guide (B 4 -1.3 -12, Appraisal Quality Matters (05/01/2024) - Lender Requirements), the borrower-initiated ROV must include the following:
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
    

5. Engage in Professional Dialogue with the Appraiser
   Leverage the relationship you built with the appraiser early in the appraisal process and approach the conversation with a cooperative spirit. While the appraiser cannot discuss value, they can discuss the criteria for how they chose the comparables, and they may provide insights into their valuation that you hadn't considered. This collaborative effort can increase the likelihood of achieving a fair and accurate property valuation

​

In navigating the process of requesting a reconsideration of value for a residential appraisal, the strategic and proactive approach undertaken in supplying crucial information beforehand becomes a pivotal asset.

 

This not only sets the stage for a more accurate initial valuation but also lays the groundwork for a collaborative and constructive relationship with the appraiser.

 

This foundation of trust may prove instrumental should the need arise for further discussions or a reconsideration. Persistence and professionalism, coupled with the relationship fostered through the process, are key elements in successfully navigating the complexities of the real estate appraisal process.

​

​

​

​

​

​

​​