Glossary of Terms

Reconsideration of Value (ROV)

Reconsideration of value in real estate appraisals refers to the process of reviewing and potentially adjusting the appraised value of a property. This typically occurs when there are concerns or disputes regarding the initial valuation provided by the appraiser.

Reasons for reconsideration of value can vary and may include:

1. Errors or inaccuracies: If there are factual errors or inaccuracies in the appraisal report, such as incorrect property measurements or overlooking important features, a reconsideration may be warranted.
2. New information: If new information becomes available that wasn't considered during the initial appraisal, such as recent comparable sales or property improvements, it may justify a reassessment of the property's value.
3. Challenges or disputes: If the buyer, seller, or lender disagrees with the appraised value and can provide evidence to support a different valuation, a reconsideration may be requested.
4. Regulatory compliance: Sometimes, a reconsideration of value is initiated to ensure compliance with industry regulations or lender guidelines.

More than a decade ago, Stewart Valuation Intelligence put policies in place that address ROVs as well as other items that we categorize as being part of the “Arbitration Process.” We review these policies with our clients, so they know what to do when a borrower or homeowner has questions about the appraisal process or results of an appraisal. SVI also understands that Appraisal Independence Requirements (AIR) must also be followed when these issues arise.