Reconsideration of Value

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Atlanta Valuation Training 2015, Slide #53

Reconsideration of Value

The underwriter may request a reconsideration of value when the appraiser did not consider information that was relevant on the effective date of the appraisal.
The underwriter must provide the appraiser with all relevant data that is necessary for a reconsideration of value.

 

Atlanta Valuation Training 2015, Slide #54

Reconsideration of Value

Second appraisal prohibited
Typically, new comparables [sic] become available after the effective date.

 

Handbook 4000.1, 9/15/2015, page 166

The underwriter may request a reconsideration of value when the Appraiser did not consider information that was relevant on the effective date of the appraisal. The underwriter must provide the Appraiser with all relevant data that is necessary for a reconsideration of value.

 

The Appraiser may charge an additional fee if the relevant data was not available on the effective date of the appraisal. If the unavailability of data is not the fault of the Borrower, the Borrower must not be held responsible for the additional costs. The effective date of the appraisal is the date the Appraiser inspected the Property.

 

New Comparable Sale Provided by Lender

The lender has provided a relevant comparable sale that closed before the effective date of the appraisal but had not been reported in the local Multiple Listing Service.  This sale is in the same block as the subject and more similar to the subject than the comparable sales used.  It is also the most recent sale.  As a result of this new information, comparable sale #3 was removed from the appraisal report and replaced by the new comparable sale.  As a result, the opinion of value is higher than it was in the original appraisal. (Handbook 4000.1, 9/15/2015, page 166)

 

If the sales provided by the lender are not relevant, no action is necessary with regard to the appraisal report.  The lender can be notified of the lack of relevance by email or other communication.

 

Modified:  8/21/2018

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