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An appraisal is an opinion of value determined by a licensed real estate appraiser and provides your lender an opinion of how much your property is worth in your market (fair market value). Lenders require an appraisal to confirm that the property offered as collateral for your loan has sufficient value to support the requested loan amount. Appraisers must follow systematic procedures as defined by the Uniform Standards of Professional Appraisal Practice (USPAP). These rules govern things like the selection of comparables, acceptable methods for making adjustments, along with standards for professionalism and ethics.
A Reconsideration of Value (ROV) is a request made by a consumer for the appraiser to reevaluate the analysis and conclusions of the initial appraisal using additional information provided by the consumer that the consumer believes to be relevant to the appraiser’s value determination. Citywide Home Loans, LLC (“Citywide”) requires the consumer to complete a Reconsideration of Value Request Form which includes the information, data, or comparables that the consumer believes will impact the value conclusion.
Keep in mind, just because your appraised value came in lower than you expected, this doesn’t necessarily mean your appraisal is flawed or that another appraisal would yield a higher appraised value. Appraisal reports capture the appraiser’s opinion of value in a snapshot in time, meaning an appraisal report performed six months ago or six months in the future may very well produced a different opinion of value. If the appraiser does not adjust the value this also doesn’t necessarily mean the appraiser is wrong – the appraiser is required to meet the standards provided under USPAP which may limit their ability to consider certain facts or information you provide. In all instances, if you believe your appraisal is deficient, we strongly encourage you to submit an ROV request to help us ensure that your appraisal report accurately reflects the value of the property.
Citywide takes its role in ensuring fair and responsible lending very seriously and does not tolerate bias or discrimination in any aspect of the origination process – including in the appraisal process. The Fair Housing Act does not permit any form of discrimination on the basis of the applicant’s race, color, national origin, religion, sex (including gender identity or sexual orientation), marital status, military status, or disability. In addition, the Equal Credit Opportunity Act further protects applicants on the basis of their age, or receipt of public assistance. Should you have any concerns that the value conclusion in your appraisal was in any way impacted by bias or discrimination, please provide those details in your ROV Request Form, marking the appropriate box, and emailing your completed form to [email protected].
Please be as detailed as possible in providing information for the appraiser to consider. If you are working with a real estate agent, they may be able to provide you with comparable sales in the market. If this is a refinance transaction, you may use tools like Redfin and Zillow to find recent sales activity – but keep in mind, listings cannot be used. For factual errors, please provide which data points are inaccurate (number of bedrooms, number of bathrooms, GLA errors, age of home errors, presence or absence of a fireplace, parking garage, swimming pool, etc.).
Comparable sales often play a significant role in determining the appraised value. The appraiser is responsible for determining which comparables are the best and most appropriate for the assignment based upon a variety of factors. Here are a few general guidelines they must consider that should guide you in this Reconsideration of Value process:
The Appraiser Independence Requirements prohibit anyone from influencing or trying to influence an appraiser’s value conclusion through coercion, collusion, compensation or intimidation. To avoid any appearance of influence please: