ROV that results in a reduction in value

[Sadie]

I've personally never seen an ROV provided in an attempt to lower a value, but I'm sure that could be a motivation, given the circumstances.

Of course the reason is to increase, not decrease the value, but sometimes there are unintended consequences.

 

[NJ Valuator]

So are you saying that he sales they sent you that resulted in a lower value were better sales than originally used?

My question was hypothetical. It is not an actual situation that I am encountering.

 

[NJ Valuator]

Everyone, this was strictly hypothetical, and perhaps I did not explain my point clearly. What I was trying to convey is that, in many cases, Realtors search for sales primarily based on price. As a result, they may include a sale in an ROV because they believe it will support a higher value opinion; however, after appropriate adjustments are applied for differences such as lot size, GLA, location, condition, or other factors, the adjusted sale price may not actually support an increase in value.

 

[Tom4value]

I have only changed value based upon ROV twice. Once was a rehab loan and I was given erroneous specs and the second one was a significant factual error on my part (yeah, ol’e Tommy boy goofed!), Neither one based on, “well, I think I could go higher”.

 

[Trihard]

I have only changed value based upon ROV twice. Once was a rehab loan and I was given erroneous specs and the second one was a significant factual error on my part (yeah, ol’e Tommy boy goofed!), Neither one based on, “well, I think I could go higher”.

Thats the original intention of a ROV, has the appraiser missed something? The scope has now expanded to the real estate agents or loan officers who need a higher value. So they will send comps where in 99% of the time they are complete dog**** and the intention is not a true ROV, but to pump the value up. Of course this takes a bunch of time out of the appraisers day and we are not compensated for. The whole one fee for the whole process that appraisers charge the AMC is a massive farce. It allows everyone in the system to do whatever the hell they want, including BS ROV's, not reading reports, stupid revision, etc. The appraising profession is such garbage.

 

[sputnam]

Did anyone ever have a situation where the additional sales sent to you to review(that the requestor thought would result in an increase in appraised value) actually resulted in you lowering the appraised value?

Yes. It happens sometimes. If you've done a thorough job during the original appraisal, a value change should be very rare. Only the appraiser decides what is or isn't a comparable.

 

[alebrewer]

Everyone, this was strictly hypothetical, and perhaps I did not explain my point clearly. What I was trying to convey is that, in many cases, Realtors search for sales primarily based on price. As a result, they may include a sale in an ROV because they believe it will support a higher value opinion; however, after appropriate adjustments are applied for differences such as lot size, GLA, location, condition, or other factors, the adjusted sale price may not actually support an increase in value.

And this is news? I mean, not trying to pick on you, but this has been going on for about 5 decades now...

 

[J Grant]

And this is news? I mean, not trying to pick on you, but this has been going on for about 5 decades now...

I think they were venting. Let people breathe and express their frustration - that is part of the beauty of this board. Appraisers are isolated and being weaponized against- this is one of the few places to connect. Not every post needs a debate or argument - just saying.

 

[residentialguy]

Smh... you guys will cut down on mindless ROVs if you would charge for them, should it be found that you used the best sales.

 

[J Grant]

Smh... you guys will cut down on mindless ROVs if you would charge for them, should it be found that you used the best sales.

Not possible in the lending world - would love for that to happen but it would not fit TRID and if an appraiser insisted on it, that would be their last order from the client imo.

Instead, appraisers need to charge enough upfront fee because an ROV could happen even with a well-supported appraisal. I hope fees finally go up with the UAD 3.6.