BEFORE THE APPRAISER ARRIVES:
Did you receive multiple offers and/or over asking price? If Yes, send your best 3 offers to the appraiser prior to their arrival.
For a reconsideration of value (ROV), I suggest the following:
Please review the appraisal for any clerical errors regarding the subject property and comparable sales. Here are a few key points to consider.
• Stronger Comparable Sales: Are there better comparable sales that should’ve been used? This is your best opportunity for a successful reconsideration of value.
• Clerical Errors: Are the square footages, bedrooms, bathrooms, and lot sizes accurately reflected? For the subject property and comparable sales?
• Off-Market Sales: Were any off-market transactions missed? Check county auditor sites or Realist’s public records for this data.
• Adverse Features: Do any of the comps have issues not considered in the appraisal, such as proximity to a high-traffic road, sewer plant, or power lines?
• Recent Sales: Have any new, more relevant comparable sales occurred between the date of appraiser’s visit and now? If so, there may still be a chance to include them in the appraisal report.
• Sales Recency: Did any of the comparable sales close more than three months ago? A time adjustment may be needed for accurate valuation.
• Geographical Competence: Is the appraiser familiar with the area? If they're located two or more counties away, their expertise in the local market may be limited. The lender will likely ask how many appraisals they’ve completed in the area of the subject property. If there are too few, the lender may "throw out" the appraisal.
• Lastly, the appraiser likely stated that the market is "stable," but that is worth contesting. We can likely agree that the market has been "increasing" steadily over the past decade.
And as a last ditch strategy, ask the Buyer to work with a different lender (I'll do their loan if they want) and the new lender will order their own appraisal.
