How Long Does a Reconsideration of Value Take?

A Reconsideration of Value (ROV) is a formal process in real estate transactions used to challenge an existing property appraisal. It allows stakeholders, typically borrowers, to request a re-evaluation of an appraisal report if they believe it contains inaccuracies or overlooks relevant information. This mechanism is important for ensuring fair and accurate property valuations, which directly impact financing, taxes, and transaction outcomes. The duration of this process is often a primary concern.

Understanding a Reconsideration of Value

A Reconsideration of Value (ROV) is a structured request made to a lender to re-evaluate a property’s appraisal report. This request is based on new, relevant information or identified factual errors within the original appraisal. The primary purpose of an ROV arises when there is a notable difference between the appraised value and the perceived market value, or when specific issues led to an inaccurate valuation.

An ROV is appropriate under specific circumstances. These include instances where comparable sales do not reflect the subject property’s characteristics, such as differences in features, location, or condition. It is also warranted if recent sales data not incorporated into the initial appraisal becomes available. Furthermore, factual errors found in the appraisal report, such as incorrect square footage, bedroom counts, or overlooked property features, are valid grounds. An ROV is not simply a means to request a higher appraisal value due to dissatisfaction; it must be supported by substantive, verifiable information.

Preparing a Reconsideration of Value Request

Preparing a Reconsideration of Value (ROV) request involves gathering specific information and documentation to support your claim. This evidence must clearly demonstrate why the original appraisal might be inaccurate. Your submission should include:
Comparable sales data, ideally providing two to three properties truly similar in size, age, condition, and location, that have recently sold. Real estate agents, online property listings, and public records are valuable sources.
Documentation of any significant improvements or unique features of the subject property overlooked or undervalued in the initial appraisal. This could include receipts for renovations, permits for additions, or photographs.
Identification of specific factual errors present in the original appraisal report, such as incorrect property details or missing features.
A clear, concise written justification explaining the reasons for the request and how the provided evidence supports a different value opinion.

The request for an ROV is typically submitted through your lender, not directly to the appraiser. Organizing all the information clearly and concisely for the lender helps streamline the review process. The lender will then act as the intermediary, forwarding the request and supporting documentation to the appraiser for their consideration.

The Reconsideration of Value Process and Timeline

Once a complete Reconsideration of Value (ROV) request is submitted to the lender, the process begins. The lender first reviews the provided information to determine if it meets the criteria for a formal reconsideration. If valid and well-supported, it is forwarded to the original appraiser for review. The appraiser’s role involves considering the new information, verifying facts, and assessing whether an adjustment to the original appraisal conclusion is warranted.

Several factors can influence how long the ROV process takes:
The completeness and organization of the submission, as an incomplete request can lead to delays.
The appraiser’s current workload and the complexity of the specific case.
Different lenders’ varying internal policies and processing times.
Communication efficiency between the lender and the appraiser.

While there is no fixed legal timeline for an ROV, the process typically takes a few business days to one to two weeks from the time the complete request is submitted. Some reports indicate it can range from two to three days for straightforward cases to several weeks for more complex situations. This timeframe is an estimate and can vary based on the specific circumstances and the efficiency of the parties involved. During this period, direct communication for updates should be directed to the lender, as they manage the interaction with the appraiser.

Receiving the Reconsideration of Value Decision

Upon completion of the Reconsideration of Value (ROV) process, the lender will communicate the decision to the borrower. This communication often takes the form of a written notification or an updated appraisal report. There are typically three main possible outcomes following an ROV request.

The original appraised value may be upheld, meaning no changes are made to the initial valuation. Alternatively, the value could be adjusted upward if the appraiser agrees that the new information justifies an increase. In some less common instances, the value might be adjusted downward if errors were found that negatively impacted the original valuation. If the value is adjusted, the loan process will proceed based on the new, revised appraisal. If the original value is upheld, borrowers may explore other options, such as obtaining a new appraisal from a different appraiser if lender policies permit, or adjusting the terms of their loan.