Lake Lanier Blog

ROV'S have been around for years. They are known as reconsideration of value. When the borrower, lender or the Realtor feel that the value is too low; as in below the sales price or refinance value needed; (they never complain about a value that is too high) they can submit a ROV and provide other sales for the Appraiser to review and consider which may impact value. 

Here is the problem.....You have NON-Appraisers telling the Appraiser to consider other sales than the ones they already researched and provided in the report. What you may not know is that Appraisers review MANY other sales before they hone in on the best sales that are truly representative of the Subject's value. This  ROV process is like the TAIL wagging the Dog. I don't like your value so here are some other sales to review so that you can raise the value of my home. Sounds like undue pressure to me!

THE NEW RULES FOR SUBMITTING ROV'S ARE AS FOLLOWS:

1. Before the lender sends off the ROV to the Appraiser, they MUST review the ROV and determine IF it would make a difference in the appraised value AND more important is that the ROV must state why the sales they provided are BETTER than the ones the Appraiser used and why they feel the appraisal report is flawed or what about the sales used in the report are not comparable. 

2. The ROV can only include up to 5 Additional sales to review

3. There is only ONE ROV allowed per report. 

So if you plan to submit a ROV, please know that it needs to have valid support behind it. You cannot just supply sales that are HIGHER than the appraised value in order to get a higher value. That will not fly!

Lenders must provide the ROV form and option before and after the Appraisal by November 1st, 2024. This will likely slow down the entire process which will not be good for all parties involved. 

Appraisers cannot charge more money to review these ROV's and it takes time to do these reviews. So Lenders and Borrowers need to follow the rules and not submit ROV's unless they have valid reasons why the Appraisal is lacking in some form or another. 

Thanks for stopping by!