Another ROV story

[sputnam]

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.

The home owner doesn't have the right to request an ROV... unless the home owner is also your Client for the assignment.

 

[ZZGAMAZZ]

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.

Broker emails me with rental comps with higher monthly rents than those that I reported.....because her recommendatons "are in the same zip code," and I'm expected to waste my time to call bull-shixxx on an industry professional??

 

[Mike Ault]

Broker emails me with rental comps with higher monthly rents than those that I reported.....because her recommendatons "are in the same zip code," and I'm expected to waste my time to call bull-shixxx on an industry professional??

You have one license against another. Time to defend yours.

 

[J Grant]

Broker emails me with rental comps with higher monthly rents than those that I reported.....because her recommendatons "are in the same zip code," and I'm expected to waste my time to call bull-shixxx on an industry professional??

An ROV is supposed to go through the lender, not a broker emailing you directly.

 

[Zoe]

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.

I see no problem giving equal value to the porch as GLA or including in GLA. I can see landscaping being given value. Washer and dryer no (personal property). She may have lied about inclosing the porch if you have pictures that prove it was there 4 years ago.

5 sales, 4 were outside neighborhood. Okay, do we need location adjustments for differences in site values and historical property sales?

Two would support lower value is common for many real estate agents because they don't realize that they don't want you to use a comparable that would lower the appraised value. I would not drop the value based on comparables a real estate agent gave me that indicated a lower value.

If you wanted to be really mean, you could include the comparables that indicated lower value. Based on information provided by the agent, these are considered most similar and competing properties. LOL

The revised appraised value is lower than the original appraisal based on information provided by the agent. The ROV has new signature date and same effective date. Previous appraisal was performed by appraiser etc.etc.

I would stick with ethics and answer the ROV. I don't care who does the ROV.
Always and Always focus on subject. Subject is your best friend.

 

[Zoe]

I don't do ROVs without full supporting reasoning and analysis on information provided and it has to go through my client and my client request the ROV.

Agent wants an ROV or whoever. Okay, this is my protocol. You give me reasoning and analysis and send it through my client and my client send it to me.

Don't send me 10 sales or whatever. You do 3 or so with excellent reasoning and analysis and send it to my client and my client send ROV to me.

 

[sputnam]

An ROV is supposed to go through the lender, not a broker emailing you directly.

Right... And even if it comes from a different source, you aren't supposed to discuss or respond to anyone other than your Client.

 

[Zoe]

Tidewater almost eliminates ROVs with VA.. Tidewater only applies to subject's under contract for sale. Refinances are different but homeowner can do ROV with VA. It all goes through the client which is VA.

The client is very important to be included in any ROV.

Everything coming from person instigating ROV needs to go through the client to the appraiser of subject.

If I get a list of 25 comps with no reasoning or analysis I will send it back to client and say that is not what I need. I need like 3 good comps with very good supporting reasoning and analysis.

 

[J Grant]

Right... And even if it comes from a different source, you aren't supposed to discuss or respond to anyone other than your Client.

Exactly. If a RE agent or other party contacts me, I explain to them that there is an ROV process and that they can forward sales through their lender.

 

[Tom4value]

Exactly. If a RE agent or other party contacts me, I explain to them that there is an ROV process and that they can forward sales through their lender.

According to the rules on ROVs, they can only be initiated from the borrower. Real estate agents cannot request an ROV.

Now, I am not as dumb as I look. RE agents get the borrowers to file the ROV, giving them the sales data, even helping them write it out.