Another ROV story

[Dublin ohio]

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.

How could an ROV (reconsideration of value) not be about value?

 

[Overimprovement]

How could an ROV (reconsideration of value) not be about value?

I guess that's what being out of the game almost 3 years gets me!

 

[sputnam]

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.

Sure.... typos happen. I've always considered those as revision requests... not Reconsideration of Value.

 

[OSU Beavers]

Next time Google the homeowner. If they are a Realtor or attorney, RUN!

 

[shrubberyvaluation]

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.

I'm not going to write a dissertation on why a new construction 5 miles away isn't comparable to my REO subject and even if I did I don't think it would make a difference.

 

[Tim Hicks (Texas)]

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.

Just had one tonight, I was $20,000 below contract price. Five sales directly from the subdivision and one from outside the subdivision all within the past 90 days. They sent one sale that supported less than my value and two sales over six months. They then stated there were rising market conditions. I had to point out my monthly market conditions report that shows there were stable market conditions for the last six months and declining market conditions for over six months.

Sometimes, you cannot avoid an ROV.

 

[J Grant]

The ROV punishes an appraiser for coming in "Low" ( translation: the appraisal value was a well-supported market value below the needed deal or loan in a refi).

As others noted, pointing out an error is not an ROV; that would be a review.

 

[sputnam]

I'm not going to write a dissertation on why a new construction 5 miles away isn't comparable to my REO subject and even if I did I don't think it would make a difference.

You can do as you choose however, the job is to provide a credible opinion of value in a report conatining enough detail to satisfy the requirements of the Intended Users. If you are getting that sort of revision requests, seems like there isn't enough detail in your report.

The truth is.. if you get a ROV with a ridiculous sale attached... you will write an explanation as to why you didn't consider it to be a good substitute for the subject property.... or... you will no longer do business with that Client.

 

[sputnam]

The ROV punishes an appraiser for coming in "Low" ( translation: the appraisal value was a well-supported market value below the needed deal or loan in a refi).

As others noted, pointing out an error is not an ROV; that would be a review.

The ROV isn't a punishment. It's an attempt by the borrower, loan officer, realtor to complete a transaction.

 

[J Grant]

The ROV isn't a punishment. It's an attempt by the borrower, loan officer, realtor to complete a transaction.

An attempt to influence an appraisal value by the borrower, loan office, or realtor to complete a transaction is what is wrong with this profession - that is not only allowed, but presented to the borrower as an option when they apply for a loan.

It acts as a form of punishment - if the appraiser hits the bullseye, they do not have to spend additional time, and added stress, of researching and responding to an ROV. Nothing wrong with coming in at value, but this is a Darwinian way of training an appraiser that not coming in at value gets penalized.