Reconsideration of Value: How to respond?

[NC Values]

Just received a "Reconsideration of Value Request Form" from the lender. The borrower disagrees with the appraised value and has provided 3 recent sales that the borrower feels are more indicative of the true value of his home.

I do not concurr with the comparable sales provided. Comps are located more than 4-5 miles away in a different county/school district and with different prevailing property values. Design styles and quality of construction are also different. Closer and more similar comparables are available.

What form or method of written correspondance should I use to respond to the Reconsideration of Value?

 

[residentialguy]

Dear Client,

The requirements of a Reconsideration of Value are very specific in that the appraiser can only be requested to review appropriate comparable sales. These sales are located more than 4-5 miles away in a different county/school district and with different prevailing property values. The design styles and quality of construction are also different. These obviously are not appropriate comparable sales, but were choosen because of their higher sale price. Please note that any more pressure to use or review sales that are chosen simply for their sale price in a "Reconsideration of Value" request and are not found to be appropriate comparable sales will be considered a violation of Appraiser Independence protected in the Dodd-Frank Act by unlawfully influencing an appraiser and encouraging a targeted value. This violation will be immediately reported to the Consumer Financial Protection Bureau, the ASC, the State Attorney General and all other applicable State and Federal authorities as well as any related Government Sponsored Enterprises, which consider it an unacceptable practice to select inappropriate comparable sales.

Kindest regards,

NC Values

 

[J Grant]

Just a brief paragraph on addendum page of appraisal that client supplied thse 3 sales on X date for consideration, after reviewing the sales they are deemed not comparable for (he reasons you wrote.)

These ROV'sre a total waste of our time.

 

[Meandering]

Dear Client,

The requirements of a Reconsideration of Value are very specific in that the appraiser can only be requested to review appropriate comparable sales. These sales are located more than 4-5 miles away in a different county/school district and with different prevailing property values. The design styles and quality of construction are also different. These obviously are not appropriate comparable sales, but were choosen because of their higher sale price. Please note that any more pressure to use or review sales that are chosen simply for their sale price in a "Reconsideration of Value" request and are not found to be appropriate comparable sales will be considered a violation of Appraiser Independence protected in the Dodd-Frank Act by unlawfully influencing an appraiser and encouraging a targeted value. This violation will be immediately reported to the Consumer Financial Protection Bureau, the ASC, the State Attorney General and all other applicable State and Federal authorities as well as any related Government Sponsored Enterprises, which consider it an unacceptable practice to select inappropriate comparable sales.

Kindest regards,

NC Values

Love it! :icon_lol:

He has it right you know? Will put a stop to further, "and what about this sale or this listing?"

.

 

[SANDY]

Just a brief paragraph on addendum page of appraisal that client supplied thse 3 sales on X date for consideration, after reviewing the sales they are deemed not comparable for (he reasons you wrote.)

These ROV'sre a total waste of our time.

Example of a professional response.

 

[SANDY]

Dear Client,

The requirements of a Reconsideration of Value are very specific in that the appraiser can only be requested to review appropriate comparable sales. These sales are located more than 4-5 miles away in a different county/school district and with different prevailing property values. The design styles and quality of construction are also different. These obviously are not appropriate comparable sales, but were choosen because of their higher sale price. Please note that any more pressure to use or review sales that are chosen simply for their sale price in a "Reconsideration of Value" request and are not found to be appropriate comparable sales will be considered a violation of Appraiser Independence protected in the Dodd-Frank Act by unlawfully influencing an appraiser and encouraging a targeted value. This violation will be immediately reported to the Consumer Financial Protection Bureau, the ASC, the State Attorney General and all other applicable State and Federal authorities as well as any related Government Sponsored Enterprises, which consider it an unacceptable practice to select inappropriate comparable sales.

Kindest regards,

NC Values

No need for the threats as part of initial response.

 

[Mr Rex]

Thank you, but no thank you. See cert 7.

 

[residentialguy]

No need for the threats as part of initial response.

Yes, there is. This is a serious issue...one that has ruined our profession. You need to set precedence of what you're made of. A statement like this has been in every report I send out. They know ahead of time what's coming down the pike, should they pull this kind of crap with me. BTW, since I've had this in my reports, I've not had a Reconsideration of Value request.

 

[Riick]

Yes, there is. This is a serious issue....
BTW, since I've had this in my reports,
I've not had a Reconsideration of Value request.

Ah... but have you had any appraisal orders?

(( That's a joke, son, a joke. ))

/

 

[residentialguy]

Ah... but have you had any appraisal orders?

Sure...I just got an order the other day from my Mom to appraise her house. She said that she wanted to get rid of her PMI on her $400,000 house...so I reported her for value pressure.