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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.”

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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.

3 Responses to VA Appraisals and Reconsideration of Value

  1. Our home was under contract for $233k appraised at $220k so we agreed to lower price and then Va told appraiser to only use the 3 comps in our subdivision and lowered it to $205k. Our home was custom built 2007 we had ingroumd gunite pool, exstensive landscaping, sprimkler system and whole house gmnerator. No comps in our small subdivision less than 200 homes with pools. Appraiser used subdivision similar 4 miles away with ingroumd pools. So why would VA do that? Home inspector indicated home was one of best built and maintained homes he had seen. The buyer had already paid for home inspection, pool inspection, termite report, and survey. We were 4 days to close when this happened. We paid 195k when we purchased and the put pool, generator, hardwood floors, etc. the home appraised in 2008 when pool was installed for$220k when market was bad. Everyone was very upset but we could not afford to loose anymore money. Is ther anyone we can appeal to?

  2. I called Va and he explained reconsideration process and then said I remember a phone call about this and he said he had not received a formal request for reconsideration he said everyone want to blame VA but he said it was the lenders underwriter not VA. So I emailed my agent to get a copy of email where she requested corrections to the appraisal. Instead I got lots of emails from lender including computer notes which clearly shows the VA person I spoke with did tell them the appraiser had to use only comps in our subdivision. Our subdivision is small only 200 homes she used 3 comps in same zip, same school district with ingroumd pool 4 miles away only because there has been no resale of homes with pools on lake in our subdivision. I feel sine the VA person was not honest when I called him he would not change anything if I sent him the request. Do you have any other suggestions? I have sold homes in other states and never told all comps had to be from subdivision especially when there were no good comparables. I could understand if we lived in a neighborhood of 1500 or more homes which is common in TX. Please help if you can.

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