Another ROV story

[Tom4value]

Right, but how do I anticipate them asking me to review some sale 20 miles away when all my comps are in the subject's community. No amount of explaining will prevent that.

True. There is no way to prevent that. The rules also state that the underwriter must evaluate the sales before submitting them to the appraiser but we know how well that works!

The good news is the more ridiculous the sale is, the quicker it is to explain it. “A sale 20 miles away is not considered comparable.” Done. No one will beat you up for that.

 

[Tom4value]

I was in Vegas at the Expo when the ROV system came out. They said one of the reasons for coming up with the system was before, if the lender and/or the appraiser refused to address any rebuttal, the only option was to sue the appraiser. This system, with clear-cut guidelines, gave the borrower a way to “address concerns” without having to resort to a lawsuit.

This makes sense to me. Remember, only the borrower can initiate an ROV; not a realtor or a loan officer. Sure, there may be times when a borrower will sue anyway but the vast majority of borrower complaints is just a, “what the heck happened?” scenario and just want to cover any unchecked bases.

 

[sputnam]

True. There is no way to prevent that. The rules also state that the underwriter must evaluate the sales before submitting them to the appraiser but we know how well that works!

The good news is the more ridiculous the sale is, the quicker it is to explain it. “A sale 20 miles away is not considered comparable.” Done. No one will beat you up for that.

Right.... you can't. All you can do is respond.... professionally, that the comparables you used are better than one that's 20 miles away.

 

[Tom D]

You appraisers? You gotta be like migrant farm workers. You gotta pick the right cherries. No lemon picking today.

 

[Swagger2015]

I had an ROV where the home owner sent over 30 Zillow comparables. Just like your ROV with 4 out of the 5 comparable properties being located outside of the neighborhood or in superior areas, all of the Zillow comparables were either located over 10 miles from the subject (with no reason to do so) or didn't exist at all. Same story because the ROV was generated because the home owner didn't want his value to be determined by comparable sales located in his specific neighborhood.

 

[Tom4value]

I had an ROV where the home owner sent over 30 Zillow comparables. Just like your ROV with 4 out of the 5 comparable properties being located outside of the neighborhood or in superior areas, all of the Zillow comparables were either located over 10 miles from the subject (with no reason to do so) or didn't exist at all. Same story because the ROV was generated because the home owner didn't want his value to be determined by comparable sales located in his specific neighborhood.

30? Was this a long time ago because the current rule is maximum of six properties.

 

[Terrel L. Shields]

Canned reply. Reports are required to provide the most recent, similar, and proximate sales.

Sales over X miles are considered to not be the most proximate sales. There are numerous closer sales.

Sales over X months ago are considered to not be the most recent sales. There are more recent sales available.

The comp offered is not the most similar to the subject. It is too old too new too big too small not similar quality bedroom count etc. Fill in the blank.

 

[shrubberyvaluation]

of course their adv0cates for borrower or seller and refi's has been going on since JC was a corporal

In our area we did limit ROV's to two tries from realtors

In this country no one garantees you a living. No but it does give you opportunity

The best defense is to get out in front of this by nailing a lot of nails into the coffin be for you submit the report
your one angry person.

Sorry but not sorry

Sure, I do this if there is some sale that a layman might think is a good comparable, I will get in front of it. I'm not addressing new construction 5-10 miles away for an REO property to nail into a coffin.

 

[Tom4value]

Canned reply. Reports are required to provide the most recent, similar, and proximate sales.

Sales over X miles are considered to not be the most proximate sales. There are numerous closer sales.

Sales over X months ago are considered to not be the most recent sales. There are more recent sales available.

The comp offered is not the most similar to the subject. It is too old too new too big too small not similar quality bedroom count etc. Fill in the blank.

All true. However, for an ROV, I want to go beyond your first two points. I explain why the individual sales are not comparable. My last comment in the TOV is your third, almost word for word!

 

[Sandra Koutsopoulos]

Only twice in 25+ years have I increased value based on ROV. Usually the comps provided are just not as comparable as the ones I've used. I actually don't (generally) mind getting the occasional ROV, because it gives me an opportunity to point out exactly why I put the value where I did, how I supported that value, and why their 'suggestions' are not going to change my value. If you can point out the flaws in their 'comps', such as too far away, much newer/older, better/poorer condition, bigger/smaller lot size, recently upgraded vs rough, perhaps they can see that appraisers actually do an in depth process and analysis. It's an opportunity to educate.