Another ROV story

[Tom4value]

Did a refi appraisal last week. Took good notes as she talked about the improvements, and she mentioned the enclosed porch that has been winterized, centrally heated and finished and “should be included into the GLA”.

Whoa, oh! She said, “GLA”. She is either an appraiser or a realtor. Her lawn lawn signs in the garage confirmed the latter. I totally agreed with her about the above but I knew that if I appraised it as $100k or $1 million, she was going to not be happy.

Spoiler alert! She wasn’t. Filed an ROV. She broke the rule about questioning opinion stuff (C3 vs.C4,) didn’t give her value for landscaping and not including the washer and dryer even though she admitted that they are personal items. I can explain the condition stuff because she bought the house 4 years ago and the MLS photos at that time showed she was lying about what she did.

She provided 5 sales. 4 were outside the neighborhood. The one in the neighborhood was far superior in quality. Two would support (after adjustment) a LOWER value! I mention that because of a recent post asking if we have ever came in below our value due to an ROV.

No, I will not drop the value. Tomorrow is going to rain so I will take the time to be thorough in my response before I go on vacation.

Don’t have a question. Just thought it would give you folks a giggle.

 

[Trihard]

The scope of a ROV has been expanded from, did the appraiser miss something?? To, I don't like the value. I have lenders send me ROV's with a note saying that the loan offier sent the comps on a refi. If appraising was a serious profession we would be able to charge $150 for bogus ROV's but instead everyone can push us around. This profession is pure garbage in every way possible.

 

[Tom4value]

The scope of a ROV has been expanded from, did the appraiser miss something?? To, I don't like the value. I have lenders send me ROV's with a note saying that the loan offier sent the comps on a refi. If appraising was a serious profession we would be able to charge $150 for bogus ROV's but instead everyone can push us around. This profession is pure garbage in every way possible.

I see your point but I actually welcome the new, standard procedure. Before, lenders did what they wanted to. Sure, some would not accept any ROV but most would accept anything. Gone are the days of, “ok, but how about these?” multiple times or any rebuts of your opinions.

 

[shrubberyvaluation]

It really is meaningless if its considered GLA or not, it is just a reporting requirement. I disagree that makes the enclosed porch GLA as it also needs to be similar quality as the rest of the house, but what matters is how the market views it, even if its not GLA if the market values it similar its just reported differently. Of course these reporting requirements can turn into complaints from those that don't understand.

 

[sputnam]

The scope of a ROV has been expanded from, did the appraiser miss something?? To, I don't like the value. I have lenders send me ROV's with a note saying that the loan offier sent the comps on a refi. If appraising was a serious profession we would be able to charge $150 for bogus ROV's but instead everyone can push us around. This profession is pure garbage in every way possible.

Technically, the scope of ROV's has not changed. The 'rules' are that they must provide the reasons the appraiser made errors in the report or comparable sales they think the appraiser should have used or both. It's also one and done. They get one shot at it. Unfortunately, many Clients and property owners are certain they could do an appraisal just as well as an actual appraiser can. They ofen just throw whatever they can find at it to see if anything will stick. Even more unfortunately, that notion is strengthend by the all too many 'skippys' in our profession. While it's certainly possible that an good appraiser will miss a good comparble sale, it's very rare for those appraisers who aren't continually trying to shortcut the work. I've been an appraiser for more than 40 years and have had a handful of ROV's. The key to not getting them is being thorough on the first pass and in writing reports that are clear and also thorough.

 

[shrubberyvaluation]

Technically, the scope of ROV's has not changed. The 'rules' are that they must provide the reasons the appraiser made errors in the report or comparable sales they think the appraiser should have used or both. It's also one and done. They get one shot at it. Unfortunately, many Clients and property owners are certain they could do an appraisal just as well as an actual appraiser can. They ofen just throw whatever they can find at it to see if anything will stick. Even more unfortunately, that notion is strengthend by the all too many 'skippys' in our profession. While it's certainly possible that an good appraiser will miss a good comparble sale, it's very rare for those appraisers who aren't continually trying to shortcut the work. I've been an appraiser for more than 40 years and have had a handful of ROV's. The key to not getting them is being thorough on the first pass and in writing reports that are clear and also thorough.

The key to not getting ROVs is to hit the bullseye. My last ROV was on a townhouse where all 3 comps were on the same street and warranted no adjustments. ROV sales were new construction miles away, subject was about 10 years old as well as the comps in the report.

A client I had starting out (that I stopped doing work for as soon as possible) sent me an ROV on an REO subject. One of the sales they wanted me to consider was a new construction 5 miles away. This was not a rural area. I can't imagine more detail in my report would of changed that.

If you are not getting ROVs you are either hitting the bullseye or you got great clients keeping the garbage from you.

 

[Trihard]

The key to not getting ROVs is to hit the bullseye. My last ROV was on a townhouse where all 3 comps were on the same street and warranted no adjustments. ROV sales were new construction miles away, subject was about 10 years old as well as the comps in the report.

A client I had starting out (that I stopped doing work for as soon as possible) sent me an ROV on an REO subject. One of the sales they wanted me to consider was a new construction 5 miles away. This was not a rural area. I can't imagine more detail in my report would of changed that.

If you are not getting ROVs you are either hitting the bullseye or you got great clients keeping the garbage from you.

Yes and appraising is an opinion based business. Allowing loan officers, sellers, borrowers and agents to add their opinion into the mix violates appraiser independence. I had a similar experience where there were 3 comps located across the street from the subject on a purchase that came in low and I still got sent an ROV with comps miles away. The whole lenders check the comps thing is a massive lie also. Underwriters see the comps and they push them through, "ehhh the appraiser will do it, I gotta make sure to hit my volume bonus."The whole system is such a joke.

 

[Terrel L. Shields]

If you are not getting ROVs you are either hitting the bullseye or you got great clients

Haven't been asked that is decades. But again, I don't do secondary market. Community banks just seem to accept the number and work around it. I suspect they take additional collateral on a UCC or something and make the loan anyway.

 

[sputnam]

The key to not getting ROVs is to hit the bullseye. My last ROV was on a townhouse where all 3 comps were on the same street and warranted no adjustments. ROV sales were new construction miles away, subject was about 10 years old as well as the comps in the report.

A client I had starting out (that I stopped doing work for as soon as possible) sent me an ROV on an REO subject. One of the sales they wanted me to consider was a new construction 5 miles away. This was not a rural area. I can't imagine more detail in my report would of changed that.

If you are not getting ROVs you are either hitting the bullseye or you got great clients keeping the garbage from you.

Hitting the bullseye is one way to avoid ROVs. It's not the only way. Delivering a well written, fully supported appraisal also works. One of the requirements for that is doing the work. To the best of my recollection, in the relatively few ROVs I've gotten, I've never been given a sale that had not already been considered and was safely tucked away in my work file.

I've worked ROVs from both sides, and imo, most of the time, the Homeowner/Realtor/Loan Officer knows that you did a good job. What they don't know is how willing you are to bend over when they complain.

 

[Overimprovement]

Regarding what ROVs are USED for....has anyone ever received an ROV that was NOT related to value? In other words, when opinion of market value was equal or greater than contract price?

If there is a factual error, that was always just a quick email to me. It's John Doe not Jon Doe...please correct and resubmit.