Reconsideration of Value: How to respond?

[Terrel L. Shields]

No mo' apple pie from momma for you...

 

[SANDY]

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.

Do what you do if it works for you. I just hope there are more like you in our area. Would be great for business-ours not yours!

 

[residentialguy]

I haven't lost a client...busier then ever. Probably the only reason you're busy is because you're grabbin your ankles whenever they say boo.

 

[Cob]

I always try to be polite and explain to the lender there is a difference between "comps" and "sales" and what they have provided are "sales".

 

[Mike Kennedy]

Re-open appraisal report, revise Comments Addendum adding:

Reconsideration of Value Request reply 07/16/2012

All Sales are not Comparable (most similar, proximate, and recent closed sales which would directly compete with a subject) sales. The sales provided to the Lender by the Borrower are located more than 4-5 miles away in a different county/school district (inferior/superior, pick one, state why) and with different prevailing property values. Design styles and quality of construction are also different (inferior/superior pick one, state why). Closer and more similar sales which directly compete with the subject property were available and were utilized as Comparable Sales in the Sales Comparison Approach to Value.

Save report under a NEW Appraiser's file number (i.e. 11892-R) and NEW report date.

Retain the original and the revised reports in your workfile along with the ROV request. Whether you bill for the additional analysis and service rendered is a business decision.

 

[NC Values]

I would like to repsond to this ROV request in a professional and polite manner with no threats and to provide a short explanation why each sale is not relevant. I do not want to revise the existing appraisal report, but provide a separate written document, with a scanned copy of the ROV request, that includes a map showing sale locations relative to subject.

Other than a letter, is there an appropriate form to use?

 

[Calvin the Airedale]

The OP's response should only take about 30 seconds: cut and paste the opening post into the email which requested the ROV and state that no further action will be taken on your part.

 

[residentialguy]

I would like to respond to this ROV request in a professional and polite manner with no threats and to provide a short explanation why each sale is not relevant. I do not want to revise the existing appraisal report, but provide a separate written document, with a scanned copy of the ROV request, that includes a map showing sale locations relative to subject.

Other than a letter, is there an appropriate form to use?

There is no form,

Here you go...no threats.

Dear Client,

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. In future, please note that the requirements of a Reconsideration of Value are very specific in that the appraiser can only be requested to review appropriate comparable sales. Inappropriate sales chosen only because of their higher sale price is nothing more then pressure for a higher value.

 

[NC Values]

I realize there is no appraisal form specifically for this purpose, so what general purpose in Wintotal is most suitable for a short response?

 

[Calvin the Airedale]

I realize there is no appraisal form specifically for this purpose, so what general purpose in Wintotal is most suitable for a short response?

If you received the request from the lender in the form of an email, send it back to them in the same format.

If you wish to be more formal, compose a letter in Word with your response in the form of a business letter. Print it to PDF and attach it to your email response.

Don't make this chore any more complicated. You've already written a response (your OP), now just send it to them.