A Reconsideration of Value (ROV) is created by an applicant and is a request for the appraiser to reconsider the analysis and conclusion provided on the initial appraisal report. The applicant will provide additional information that they believe may impact the initial appraisal valuation. Information on how to complete and submit an ROV is included below. Only one ROV request is permitted per loan file.

An appraisal is an unbiased professional opinion of a property’s value. Appraisals are completed by licensed real estate appraisers who adhere to strict appraisal form and data requirements. Appraisals compare a property to other recently sold properties in the market to develop a “fair market value”. Appraisals are then used by mortgage lenders to ensure the collateral used to finance a mortgage loan has adequate value to support the loan amount requested.

Licensed appraisers are required to follow the systemic procedures defined by the Uniform Standards of Professional Appraisal Practice (USPAP). These requirements were designed to ensure unbiased valuations of property.

Appraiser Independence Requirements prohibits anyone from attempting to influence an appraiser’s valuation. ROV forms will be reviewed to ensure there is no evidence of attempts to coerce, collude, compensate, or intimidate an appraiser for the purpose of influencing their value consideration. To avoid the appearance of influence please consider the guidance below when completing the ROV form:

• Do not provide a previous appraisal report. You may use a previous report to obtain additional comparable sales if they are timely.
• Please be respectful when completing the reason for the ROV form submission.
• Conventional, FHA, USDA Loans Only – Do not provide the appraised value, value range, or a final market value you want to achieve.
• If you have applied for a VA loan you may indicate the value you feel the ROV should result in.
• A ROV form may be rejected or requested to be recompleted if the above guidelines are not met.

Oak Leaf Community Mortgage powered by North Shore Trust and Savings (“Bank”) is committed to appraisal valuation transparency and encourages applicants to inquire about appraisal reports. The instructions below allow applicants to request an ROV and provide the required information needed by appraisers to reconsider their appraisal valuation. Complete the process below to submit an ROV request.

• Complete the online form on this page or download and complete the ROV Request Form (PDF) by entering information regarding additional comparable sales and/or additional information that may impact the initial appraisal valuation. The form must be signed and emailed to [email protected]. The Bank must obtain a completed form to process an ROV request.

The ROV form will initially ask for the purpose of the request. Use this section to indicate the reason for the ROV request. Options include:

• Review additional sold comparable sales which sold prior to the effective date of the report.
  • Select this option if you are providing additional, previously sold comparable properties that you believe will impact the appraisal valuation.
  • Comparable sales must be for a closed purchase, no listings or contingent sales can be considered.
  • Must provide a minimum of 2 comparable sales with a maximum of 5 comparable sales
  • Some characteristics to consider in the choice of comparable sales are: proximity to your property, Gross Living Area within 20%+/- of your home, keeping in mind area below the street level is considered differently, bedroom/bathroom count, age, condition and size of lot
• Factual error contained in appraisal report.
  • Select to identify factual errors in the appraisal report.
• Appraisal Misconduct
  • Select if you feel the appraiser has violated USPAP standards outlined by the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA).
• Appraisal bias or discrimination concern
  • Select if you have concerns the initial appraisal valuation reflects appraiser bias or discrimination.

Use the ROV form (Summary section) to provide specific information regarding factual errors in the initial appraisal report. Including, but not limited to:

• Incorrect square footage of living space
• Incorrect bedroom or bathroom count
• Age of property errors
• Errors regarding aspects of the property (parking garage, fireplace, swimming pool, etc.)
• Other aspects of property that appear inaccurate

Work with your loan officer and real estate agent to get comparable sales information. Comparable information from websites like Realtor, Zillow, Redfin, and Trulia can also be utilized to provide recent sale activity of comparable properties however keep in mind that the best information source will be from your current or local realtor. Properties currently listed for sale cannot be use.

Comparable sales are recently sold properties that share characteristics with the property that is being valuated. Appraisers are responsible for determining and selecting comparable sales that are the best and most appropriate for the appraisal assignment. To do this the appraiser takes into consideration a variety of factors and follow the general guidelines below. This information should also assist you with completing the ROV form.

• Comparable sales must be recently closed sales. Active listings cannot be utilized as they don’t present a fair market value until a sale is finalized.
  
  The closed date of the comparable sale must be prior to the effective date of the initial appraisal valuation.
• Appraisers must utilize at least three closed comparable sales.
• Generally, comparable sales must have closed within 6 to 12 months prior to the effective date of the initial appraisal valuation.
• Appraisers can use time adjustments when they identify more appropriate comparable sales that have closed more than 12 months prior.
• Comparable sales should be located in the same neighborhood. A general rule is within one mile to the subject property. Properties located in sub-divisions or condo projects should have comparable sales in the same sub-division or condo project.
• Appraisers are able to select comparable sales from competitive neighborhoods but must provide comments and an analysis on why the comparable sales from competing neighborhoods were selected.
• Appraisers should select comparable sales with similar physical characteristics to the property being appraised. These characteristics include room count, gross living area (GLA), style of home (e.g. split level, ranch), quality and condition of property, amenities (e.g. fireplace, garage, porch), and functional age of the property.
• Often appraisers will have to select available comparable sales that may lack similar characteristics than the subject property. Appraisers can adjust on the appraisal report to account for the differences in characteristics and features between properties. Appraisers generally try to keep the gross amount of adjustments under 35% and the net amount of adjustments below 25%.