Performing a review and crafting a reconsideration of value?

[itmustbeme77]

Has anybody had experience performing a review and crafting a reconsideration of value? I was considering offering this service to clients (buyers, sellers, and agents) in my area, so if the appraisal comes in under contract price and they want to confirm that a good appraisal was done I could do that. If there are better comparable properties to be used and/or any mistakes that could affect the value in the appraisal they could bring these to the lender to get the appraisal updated. Any thoughts or advice would be greatly appreciated.

 

[Meandering]

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

 

[RSW]

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.

 

[itmustbeme77]

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.

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?

 

[Tom4value]

Has anybody had experience performing a review and crafting a reconsideration of value? I was considering offering this service to clients (buyers, sellers, and agents) in my area, so if the appraisal comes in under contract price and they want to confirm that a good appraisal was done I could do that. If there are better comparable properties to be used and/or any mistakes that could affect the value in the appraisal they could bring these to the lender to get the appraisal updated. Any thoughts or advice would be greatly appreciated.

Though anyone can request a ROV, it has to come from the lender (assuming we are talking about an appraisal for mortgage financing. Therefore, the buyer seller, realtor are not your client, the lender is.

Also, by advertising your service as, “crafting a reconsideration of value”, the implication is that you are looking to change the value, a preconceived outcome. You can understand that is way different than performing a review.

 

[itmustbeme77]

Though anyone can request a ROV, it has to come from the lender (assuming we are talking about an appraisal for mortgage financing. Therefore, the buyer seller, realtor are not your client, the lender is.

Also, by advertising your service as, “crafting a reconsideration of value”, the implication is that you are looking to change the value, a preconceived outcome. You can understand that is way different than performing a review.

Good point, "Performing a review of the appraisal and crafting a reconsideration of value if a reconsideration of value is supported by the data." How would that sound?

Also, even if the Lender has to request the RoV to the appraiser, oftentimes I have seen that the buyer/seller/agent craft an RoV (usually an RoV not supported by any data), and the lender just passes it along. So my client can still be the buyer/seller/agent. My client has the option to take my data/analysis and pass it along to the lender if they so desire.

 

[shrubberyvaluation]

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.

I've heard many on these boards talk about doing things to help the veteran with their VA appraisal which is advocating. While its great to honor veterans that is outside of our work as an appraiser when appraising a real estate property.

 

[J Grant]

Is this poster an appraiser? It says general public.

 

[itmustbeme77]

Is this poster an appraiser? It says general public.

Yes, CRA.

 

[sputnam]

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.