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“Some clown wants a reconsideration of value (ROV)?! ROVs are Satan’s own seed, right? Probably, that obnoxious broker told the borrower to file the ROV! This would not be even an issue if that idiot, greedy broker had priced the property correctly! So, now what?! I’ve got to stop everything else I’m doing to babysit the ego of a cretin real estate broker!? This is BS! I’m going to send that stupid broker an email with two words. The second one will be “you!”, but the first will not be “Thank”!”
Has a reconsideration of value (ROV) ever prompted you to react this way (or in one similar to it)? In truth, they are a major PITA (pain in the butt). They take a lot of time away from the money-making of real estate appraisal. They are a tacit accusation some part of your appraisal was wrong. And if you later change your value conclusion, that is florescent orange, flag-waving admission you were wrong! So, what’s an ethical, honest appraiser to do?
When it comes to a reconsideration of value, the honest, ethical appraiser complies with the request. Chances are, a timely response to an ROV is part of the appraiser’s original engagement contract. Therefore, we as appraisers have both an ethical obligation to comply, as well as a legal one. When we choose not to comply, we’ll save some time and money now. But that choice will cost us a lot more time, money, and aggravation down the line. This is especially true if a state appraisal board gets involved. Defense against state board charges can easily run $2,500 to $5,000, even if there are no fines and penalties.
In the podcast, we cover three ways to deal with reconsiderations of value. Actually, the best way is to appraise and report so that idiot broker can’t demand an ROV. When we properly explain WHY it is we did/did not do something, it hard to request that ROV. When we don’t, its easy.
Thanks for listening! My Best!
Thank you for ROV. I have previously had a gut reaction. this has given me a new perspective, and how to professionally address the ROV request
Thanks, Jeffery! ROVs are the bane of an appraiser’s existence, but they are here to stay. The best we can do it appraise so well there is no reason for the ROV.
Hello: Thank you for sharing your years of experience with us. I’m enjoying the variety and challenges of the fee appraisal world in my second career after 29 years of being a property tax assessor. Keep up the interesting discussions.
Thanks, Kevin! This is why I do these things, to keep appraisers on top of what’s going on!