By Cristy Conolly
If you’re financing a home and the appraisal came in lower than expected, you may be wondering how to dispute a home appraisal and whether you have options.
In mortgage lending, the formal process for challenging an appraised value is called a reconsideration of value (ROV). An ROV gives borrowers a structured way to request a review of the original appraisal report when they believe key information may have been overlooked. Through their lender, borrowers can submit supporting documentation and ask the appraiser to review specific concerns about the report.
An ROV isn’t about pressuring an appraiser to change a number. It’s part of the structured valuation process designed to ensure the appraised value reflects accurate property details, comparable sales and current real estate market conditions. When used correctly, the ROV process gives borrowers a fair opportunity to correct factual errors or provide relevant market data tied to the subject property.
In our experience, the most effective ROV requests focus on verifiable data — not emotion or contract bias — and clearly explain why the original report may need review,” says Cristy Conolly, EVP of Quality Control at Class Valuation.
In this blog, we’ll explain what an ROV is, when it makes sense to submit an ROV request, how the process works and what to expect in the broader real estate and mortgage transaction.
When an ROV makes sense
An ROV makes sense when there is clear evidence that something in the appraisal may be inaccurate or incomplete.
The most common reasons include:
- Comparable properties that are not truly comparable to the subject property
- Adjustments that don’t appear to align with market conditions
- Incorrect property details, such as square footage
- Missing upgrades or features that affect value
When an ROV doesn’t make sense
Where ROVs tend to go wrong is when they’re based on expectation rather than data. Simply needing a higher value to make a deal work is not a valid reason for a reconsideration of value.
Another common misunderstanding involves renovations. Borrowers often assume that the cost of improvements directly translates to value. In reality, appraisers value homes based on what typical buyers in the real estate market are willing to pay, not just the contract sales price or the cost of upgrades. A $40,000 kitchen remodel, for example, may result in a much smaller adjustment, adding only $10,000 to the home’s market value.
Finished basements are another frequent source of confusion. While they add value, they generally cannot be included in the gross living area or room count. They are valued separately, which can surprise borrowers unfamiliar with appraisal practices.
The Reconsideration of Value process, step-by-step
While details vary by lender, the Reconsideration of Value process generally follows this path:
Step 1: Submit a ROV request through your lender
First, the ROV request must go through your lender. Borrowers cannot submit reconsiderations directly to the appraiser or appraisal management company due to appraiser independence requirements.
Step 2: Gather supporting documentation
This may include:
- Recently sold comparable properties (not listings), including any comparable sale that may have been overlooked
- Corrections to property details
- Documentation of upgrades or features
- Market data that supports the request
Step 3: Lender review and appraiser response
The lender reviews the ROV request to ensure it complies with guidelines before sending the formal request to the appraiser. The appraiser must consider the information and provide a thorough, supported response. A reconsideration does not guarantee a change in value, but it does ensure the information will be reviewed. In most cases, the appraiser will respond within a set number of business days, depending on lender guidelines and loan timelines.
At Class Valuation, we have a dedicated team that manages every ROV request to ensure submissions are complete, compliant and clearly communicated. We do not accept generic responses. Appraisers are expected to explain their conclusions and address the information provided.
Preparing a strong ROV
If you’re working with a real estate agent during your purchase or refinance transaction, focus on quality over quantity. Recently sold comparable properties in close proximity are far more persuasive than listings or distant sales.
Price per square foot, while common in real estate conversations, is not how appraised value is determined. Appraisers evaluate individual components of a property through line items in a detailed comparable grid, not a single price-per-square-foot calculation.
The goal is to provide relevant, well-supported information that truly reflects the market for the subject property.
How Class Valuation helps reduce unnecessary ROVs
At Class Valuation, avoiding unnecessary ROVs starts with appraiser selection. Our panel includes thousands of appraisers nationwide, supported by staff appraisers and our Class Elite Panel, both of which are top performers with deep local market expertise.
Assignments are based on property type, location and appraiser performance, helping ensure credible valuations from the start. Every appraisal is also subject to quality control reviews that verify compliance with agency requirements, client guidelines, and data supporting adjustments and market conditions.
This structured approach is designed to reduce preventable disputes and increase confidence for both borrowers and lenders.
What happens if the value still doesn’t change?
If the appraiser’s response indicates the value is supported, the next step may be an appraisal review, an independent evaluation by another qualified appraiser. Only after that, and with proper support, could a second appraisal be considered.
The takeaway is this: a reconsideration of value is designed to ensure accuracy — not to renegotiate a deal.
When supported by clear data and relevant market evidence, it serves its intended purpose: protecting fairness in the valuation process.
Contact us today for more information.
As EVP of Quality Control at Class Valuation, Cristy Conolly is responsible for the company’s quality control strategy. She leads teams focused on accuracy, compliance, and continuous improvement, while collaborating closely with internal stakeholders and lender partners to strengthen confidence, consistency, and compliance across valuation solutions.