VA Appraisals and Reconsideration of Value
Because this affects the amount of the VA loan, the VA has built an appeal process into the appraisal system, known as a “Reconsideration of Value” (ROV), that can be used in certain circumstances. According to the 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. It’s not intended as a cure-all for any situation where there’s a disagreement over the appraisal results, but it can be used in some 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 requester can submit additional sales data and the fee appraiser will have around five working days to process this 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.”