VA Appraisals and Reconsideration of Value
When a VA loan applicant wants to buy a home, gets a contract sales price, and a VA assigned fee appraiser looks at the property, the results of that appraisal may not correspond with the asking price of the house.
This affects the amount of the VA loan, so the VA has built an “appeal” process into the appraisal system that can be used in certain instances. According to VA Appraisal Guidelines, “When the appraised value falls below the sales contract, any party to the transaction may request a reconsideration of value.”
This means that the appraiser could be required to review the original appraisal for possible reconsideration. It’s not intended as a cure-all for any situation where there’s a disagreement over the appraisal results, but does have its uses in the right circumstances.
When requesting a reconsideration of value, the request “generally comes through the lender or VA and is forwarded on to the fee appraiser. The requestor may, but is not required to, submit additional sales data for review in the reconsideration process…Whether or not the requester submits additional data, the fee appraiser will have five work days to respond to the reconsideration request.”
Those requesting the reconsideration of value should submit any data that wasn’t available at the time the appraiser made out the original report. It’s important for VA borrowers to note that requesting these services is not included in the original appraisal fee.
According to the VA rules, “When information submitted in support of an ROV request requires the fee appraiser to review data that was not available at the time of the appraiser’s report, the appraiser will be allowed to charge a reasonable fee for this service.”
On the other hand, the VA guidelines also note, “If the appraiser finds during the review that errors and/or omissions were made by him/her that affected the final estimate of value of the original report, no additional fee will be allowed.”
About Joe Wallace
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association.