When a potential VA loan applicant is in the position to buy a home they usually get a contract sales price and then a VA assigned appraiser looks over the property to assess the value of the home. Sometimes the VA assigned appraiser’s value of the home does not reflect the sales price. Because the amount of an appraisal affects the amount of the VA loan, the VA has built an appeal process into the appraisal system, known as a “Reconsideration of Value,” or ROV .
Basically, 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 process is not really intended to be a cure all for the situation, but it can definitely be used in some situations where there is a disagreement over the appraisal results.
When a request for a reconsideration is requested it usually 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.
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.