Performing a review and crafting a reconsideration of value?

[J Grant]

I don't think it would be a viable business model. Most parties would not want to pay for a review and a good review takes time, and there is not guarantee the lender would even more concise a review that they did not order. A lender will pass along data for an ROV from outside parties to the appraiser, but a lender is under no obligation to read a review of an appraisal - and the ROV must be prepared by the appraiser who did the appraisal, not an outside party.

 

[Tom D]

many appraisers are too stubborn to change a value. it does make you look bad. citi would send your appraisal to state after you changed the value which they requested. i changed a value once when a friend reviewer found a sale that wasn't showing up in my search. good non AMC lender reviewer, but that was the only time i was wrong.

 

[Tim Hicks (Texas)]

From VA "Lender Reconsideration of Value Request SOP... Any party of interest may request a change to a NOV. For documentation purposes, every such request must be in writing. Only one request will be completed. The change request must be submitted to the lender."

The seller absolutely has the right to request a reconsideration of value according to the VA itself, but the Veteran must approve the ROV request. If the seller sent it in directly instead of sending it to the lender to have the lender confirm with the veteran and send it in then they did not follow SOP correctly.

I appreciate your advice regarding not being an advocate. I would not be doing this service to advocate for them, there could be plenty of times that I review the appraisal in question and inform my client that it is a solid appraisal and there are no grounds that I could find to craft a reconsideration of value.

Let me ask you this if you were a layperson and selling your home and were in contract for $840,000 and the appraisal came in at $820,000 and you had to bring the sale price down or cancel the contract, would you pay to have the appraisal reviewed and be assured that the value at $820,000 is solid and you aren't bringing down the value on a faulty appraisal?

Have you ever done appraisal reviews? Have you ever seen an appraiser make a mistake that affects the value or overlook a sale that is much more comparable than what was used? These things happen, would you not want to make sure that this did not happen to you and that you are not giving away $20,000 that a simple reconsideration of value could avoid?

I have done many reviews, but typically the problem is the other way around (over valued). I have seen a few appraisals that were under valued during a review, but they are few and far between.

 

[George Hatch]

I've performed MANY reviews which also included my own opinion of value, sometimes in agreement with the appraiser's own value conclusion and sometimes not. I have also offered additional information and/or additional comps *in support of my opinion* which were not included in the original appraisal report.

Appraisers understand this next one (leastwise, they should), but if I'm reviewing a report then all I know about the appraisers SR1 process and conclusion is what they present in the SR2 report. Just because something doesn't make it into the SR2 report doesn't automatically mean the appraiser never considered it in their SR1 development; it only means the report doesn't show it.

It therefore becomes presumptuous to state in a review that the appraiser didn't consider the HBU; all a reviewer can actually know is that the report doesn't include a summary of the HBU analysis.

 

[jay trotta]

An appraiser can either review other appraiser's work or an appraiser can do a Reconsideration of Value on his/her own work. Can't really do both on the same appraisal report.

You could certainly start a third party business offering to procure those services on behalf of others. Mostly that's already been done. They are called AMCs... Appraisal Management Companies.

As to your question.... Yes. I have experience with both reviews and RoVs.... as I'm sure many forumites have.

Years back, there was a company that ran a National Review company (the name escapes me right now), All reports would filter thru their system.

AMC's are Not review worthy and most are not competent in the review process.

 

[ucbruin]

In reality/real world, how reports really NEED to be reviewed....
Wouldn't it just be a waste of time and money for any lender to review reports written by forumites and other appraisers....

 

[George Hatch]

Talk is cheap. Any one of us could be just talking the talk on this forum and then going full donkey in their day jobs. Maybe several of us. Maybe all of us. Or maybe it's just me. You can never know what someone's work is like until you see it.

 

[residentialguy]

without a license, you'd be in trouble, in many states

Actually, you'd be in trouble being an advocate with a license. You're better off being a non licensed valuation specialist.

 

[residentialguy]

I recently completed a VA appraisal which came in under contract. The seller was an appraiser and someone gave him a copy of the appraisal. He reviewed the report and submitted a rebuttal to appraisal. It was sent to the VA. The VA sent a nasty email to the Lender condemning the appraiser for doing a non authorized review as he was nor an intended user. They also condemned the Lender for allowing the report to be given to an unintended user.

Be very careful in what you are wanting to do. Appraiser's are not to be an advocate.

This is wrong in so many ways. I'll start with 2
1. By law the homeowner gets a copy of the appraisal. The VA knows that.
2. An appraiser can review any appraisal they feel like... they don't need permission. The VA knows that, too