Can You Challenge an Appraisal? When and How to Request a Reconsideration of Value
When a home appraisal comes in lower than expected, it can throw a wrench into a real estate transaction. For buyers, it may impact loan approval. For sellers, it can mean price renegotiations or delayed closings. And for agents, it often means more back-and-forth to keep the deal alive. So what happens when you believe the appraisal doesn't accurately reflect the property's true value?
In certain cases, it may be possible to challenge the appraisal by submitting a Reconsideration of Value (ROV) request. Here's what that process looks like—and when it's worth pursuing.
Why Appraisals Can Come in Low
An appraisal isn’t an exact science. It’s a professional opinion based on available market data and property-specific factors. Sometimes, an appraisal may come in lower than anticipated due to:
Limited or outdated comparable sales
Overlooked property improvements
Unique or hard-to-compare property features
Rapidly changing market conditions
Even experienced appraisers can occasionally miss details or choose comps that others feel are less relevant. That’s why the reconsideration process exists.
What Is a Reconsideration of Value?
A Reconsideration of Value (ROV) is a formal request for the appraiser to review their original report and consider new or overlooked information that may affect the final value opinion. The request usually comes from the lender, but it can be initiated by a buyer, seller, or real estate agent.
However, this isn’t just a complaint or disagreement—a successful ROV must be supported by specific, factual evidence.
When to Consider Challenging an Appraisal
A challenge may be appropriate if:
The appraiser used comps from outside the neighborhood when better options exist
Key upgrades or improvements weren’t factored into the value
The square footage or number of bedrooms/bathrooms is incorrect
There were factual inaccuracies in the report (e.g., wrong zoning, lot size)
Keep in mind: disagreement with the value alone is not grounds for a revision. The issue must be tied to errors or omissions in the report.
How to Submit a Reconsideration Request
Start with the Lender
Only the lender (not the buyer, seller, or agent directly) can request an ROV from the appraiser. Contact your lender and express your concerns.Provide Supporting Documentation
Gather:Additional closed comparable sales not used in the original report
A list of improvements with dates and costs
Documentation correcting any factual errors
Stay Professional and Objective
Focus on facts, not opinions. Emotional or argumentative language is not helpful. Keep the tone respectful and data-driven.Wait for the Appraiser’s Response
The appraiser may or may not revise the value. If they find your new information credible and relevant, they may issue a revised report. If not, the original report will stand.
Can You Get a Second Appraisal?
In most lending situations, a second appraisal is not allowed unless there are extreme circumstances or lender-specific policies. However, if the deal falls through and a new lender gets involved, a new appraisal may be ordered as part of the new loan process.
Final Thoughts
While it can be frustrating when an appraisal comes in below the contract price, the Reconsideration of Value process offers a formal, respectful way to request a review. It's important to understand that appraisers follow strict ethical and professional standards—and value opinions are grounded in evidence, not emotions.
If you think there’s a legitimate issue with an appraisal, gather your facts and work with your lender to follow the appropriate channels. With the right information, it’s possible to bridge the gap and keep your transaction moving forward.
Definitive Valuations is a family-owned and operated appraisal firm serving North Alabama and Southern Tennessee. We believe in fair, accurate, and transparent valuations. If you have questions about how the appraisal process works, our team is here to help. (256) 828-9275
