Can I ask you to review my ROV before summiting it?

[m41210]

Hello dear appraisers, first of all, thank you for the vital labor you do, keeping the markets in check is not an easy task.

Secondly, as MLO I'm about to submit my first ROV and I thought it could be a good idea for some experienced appraisers to review it and get your comments before summiting it, is that even legal?

I can imagine ROVs are not very fun for appraisers that's why I want to prepare the ROV in a very friendly manner. The reason for the ROV is that the seller got an appraisal that is $90k higher than the lender's appraisal and my borrower and his agent would like to ask for a Reconsideration.

Thank you for any help.

 

[shrubberyvaluation]

Hello dear appraisers, first of all, thank you for the vital labor you do, keeping the markets in check is not an easy task.

Secondly, as MLO I'm about to submit my first ROV and I thought it could be a good idea for some experienced appraisers to review it and get your comments before summiting it, is that even legal?

I can imagine ROVs are not very fun for appraisers that's why I want to prepare the ROV in a very friendly manner. The reason for the ROV is that the seller got an appraisal that is $90k higher than the lender's appraisal and my borrower and his agent would like to ask for a Reconsideration.

Thank you for any help.

Deleting, misread, thought you were the appraiser.

 

[J Grant]

Just pass the POS ROV on and let the appraiser deal with it - or reduce the number of sales or comps to 3- some lenders have rules they give parties such as present no more than 3 comps per ROV.

 

[shrubberyvaluation]

I don't mind ROVs when there is some reasonable basis for someone to believe they are better than those in the report(not just the sales price is higher). I dropped a lender that kept sending ROVs with sales that were clearly not even close. Talking about a subject that is an REO that has a lot of deferred maintenance and asking me to consider new contruction sales in other markets. I would advise for the ROV to include sales that are within the neighborhood boundaries on the report.

 

[m41210]

Here is the summary of reasons to appeal :
any comment about it is of great help.
------------------------------------------------

Thank you for taking the time to complete the appraisal. I kindly request your consideration of the following points:

- Rental Income: Unit #2 of the property has been generating rental income as a short-term rental for over a year. With an average monthly yield of approximately $4,500 and an occupancy rate of 85% or higher, could this income be factored into your study? I have attached records of the rental history for your reference

-Favorable Location: The subject property boasts a location that may be more desirable than the comparables. This is due to the presence of a lake along the east side of the property, which serves as a retention area and provides water management and natural preservation benefits. Would you consider this a valid reason for an adjustment??

Lot Size Adjustment: The subject property's site is between 19% and 41% larger than the comparables. Have you taken this into account when considering a valid adjustment for lot size?

Water Views and Privacy: The subject property offers beautiful water views and enhanced privacy, making it a desirable asset within the neighborhood. Have you contemplated an adjustment to account for these attractive features?

Closer and more Recent Comparables: I would like to draw your attention to valid comparables located within a mile of the subject property that were closed more recently. These comparables could provide a more accurate assessment of the subject property. I have included the information on these properties within this submission for your consideration.

Superior conditions: In addition, please note that in comparison to the new comparables, the subject property boasts various upgrades, including large porcelain tile floors, impact windows and doors throughout, a paver driveway, a relatively new roof (approximately 4 years old), an outdoor shower, custom closets, new baseboards and door casings, new interior doors, and a remodeled kitchen and bathroom with high-quality custom finishes. The entire property has undergone a complete remodeling within the last 4 years. Considering these superior conditions, it may be appropriate to contemplate an adjustment to reflect the property's enhanced value.

Regarding energy efficiency: would you please take into consideration the presence of energy-efficient windows and doors when assessing the property's energy efficiency?

Thank you for your consideration and willingness to accommodate this requests

 

[George Hatch]

It looks like you're referring to a multi-unit property and that there's a vacation rental business onsite. If so, a couple of the factors mentioned above will be irrelevant.

Age
Building Area
No. of Units (and bedroom counts/unit)

 

[J Grant]

Here is the summary of reasons to appeal :
any comment about it is of great help.
------------------------------------------------

Thank you for taking the time to complete the appraisal. I kindly request your consideration of the following points:

- Rental Income: Unit #2 of the property has been generating rental income as a short-term rental for over a year. With an average monthly yield of approximately $4,500 and an occupancy rate of 85% or higher, could this income be factored into your study? I have attached records of the rental history for your reference

-Favorable Location: The subject property boasts a location that may be more desirable than the comparables. This is due to the presence of a lake along the east side of the property, which serves as a retention area and provides water management and natural preservation benefits. Would you consider this a valid reason for an adjustment??

Lot Size Adjustment: The subject property's site is between 19% and 41% larger than the comparables. Have you taken this into account when considering a valid adjustment for lot size?

Water Views and Privacy: The subject property offers beautiful water views and enhanced privacy, making it a desirable asset within the neighborhood. Have you contemplated an adjustment to account for these attractive features?

Closer and more Recent Comparables: I would like to draw your attention to valid comparables located within a mile of the subject property that were closed more recently. These comparables could provide a more accurate assessment of the subject property. I have included the information on these properties within this submission for your consideration.

Superior conditions: In addition, please note that in comparison to the new comparables, the subject property boasts various upgrades, including large porcelain tile floors, impact windows and doors throughout, a paver driveway, a relatively new roof (approximately 4 years old), an outdoor shower, custom closets, new baseboards and door casings, new interior doors, and a remodeled kitchen and bathroom with high-quality custom finishes. The entire property has undergone a complete remodeling within the last 4 years. Considering these superior conditions, it may be appropriate to contemplate an adjustment to reflect the property's enhanced value.

Regarding energy efficiency: would you please take into consideration the presence of energy-efficient windows and doors when assessing the property's energy efficiency?

Lastly, since you are from a different county than the subject property, I kindly ask if you could take the time to familiarize yourself with the local market in more detail. It would be greatly appreciated if you could delve into the neighborhood characteristics, the unique aspects of the subject property, and the recent sales activity. Your effort to develop this in-depth knowledge will greatly contribute to a thorough appraisal.

Thank you for your consideration and willingness to accommodate this requests

good job!

 

[shrubberyvaluation]

Here is the summary of reasons to appeal :
any comment about it is of great help.
------------------------------------------------

Thank you for taking the time to complete the appraisal. I kindly request your consideration of the following points:

- Rental Income: Unit #2 of the property has been generating rental income as a short-term rental for over a year. With an average monthly yield of approximately $4,500 and an occupancy rate of 85% or higher, could this income be factored into your study? I have attached records of the rental history for your reference

-Favorable Location: The subject property boasts a location that may be more desirable than the comparables. This is due to the presence of a lake along the east side of the property, which serves as a retention area and provides water management and natural preservation benefits. Would you consider this a valid reason for an adjustment??

Lot Size Adjustment: The subject property's site is between 19% and 41% larger than the comparables. Have you taken this into account when considering a valid adjustment for lot size?

Water Views and Privacy: The subject property offers beautiful water views and enhanced privacy, making it a desirable asset within the neighborhood. Have you contemplated an adjustment to account for these attractive features?

Closer and more Recent Comparables: I would like to draw your attention to valid comparables located within a mile of the subject property that were closed more recently. These comparables could provide a more accurate assessment of the subject property. I have included the information on these properties within this submission for your consideration.

Superior conditions: In addition, please note that in comparison to the new comparables, the subject property boasts various upgrades, including large porcelain tile floors, impact windows and doors throughout, a paver driveway, a relatively new roof (approximately 4 years old), an outdoor shower, custom closets, new baseboards and door casings, new interior doors, and a remodeled kitchen and bathroom with high-quality custom finishes. The entire property has undergone a complete remodeling within the last 4 years. Considering these superior conditions, it may be appropriate to contemplate an adjustment to reflect the property's enhanced value.

Regarding energy efficiency: would you please take into consideration the presence of energy-efficient windows and doors when assessing the property's energy efficiency?

Lastly, since you are from a different county than the subject property, I kindly ask if you could take the time to familiarize yourself with the local market in more detail. It would be greatly appreciated if you could delve into the neighborhood characteristics, the unique aspects of the subject property, and the recent sales activity. Your effort to develop this in-depth knowledge will greatly contribute to a thorough appraisal.

Thank you for your consideration and willingness to accommodate this requests

Rental Income: Short term rentals are businesses. This can be taken into account for qualifying the loan, but would not be part of an appraisal for market value.

Favorable Location: Do you have a sale that is next to a lake showing they sell for more?

Water Views and Privacy: Same thing, do you have a sale showing this to be the case?

Closer and more Recent Comparables: Are they within the neighborhood boundaries and not across major roads? Are they also multi unit properties?

Superior conditions: Multi-units are typically rented out. Do you have sales that are closer in condition than those used that show buyers will pay more for the features?

Regarding energy efficiency: I don't know the market area but someone buying to rent a place out might not care about energy efficiency unless it correlates to higher rents. I guess if short term rentals are prevalent it matters as the owner is paying for it.

If you think it is this deficient I would get a 2nd appraisal, otherwise get sales that DEMONSTRATE the points you are making for the ROV

 

[sputnam]

Just present your case as objectively and as rationally as possible. Don't make any of it about the appraiser. Make it about the appraisal. Offer relevant sales. Explain why you disagree with the appraiser's analyses and conclusions. Just keep in mind that appraisals are opinions. There is no one right answer to the question 'How much is this property worth?' They are however, opinions that are supported by the appraiser's research and analysis. You can't really tell someone their opinion is wrong.. but, you can point out 'better' data or errors in analysis. Keep in mind, that there is no authority that can forcel an appraiser to change his/her opinion of value. You might be able to persuade them.

 

[Tom D]

i would also include the sale comparable market grid from the original appraisal with the value showing. that's a better opinion than your opinion, but your rov seems pretty informative. also know, that the lender can always order another appraisal if they think the 1st one was crappy. i just did one where the 1st one missed the big unique positive selling feature.
also, if this is a multi family, i think they are the most hard to understand how it was done. also depends on the availability of sales and how many are really comparable. sometimes it's like throwing dice.