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New Appraisal Review Option

By
Real Estate Agent with Compass Licensed in DC & VA

Ever had an appraisal come in really low, or return puzzling results? If so, you know how difficult it is to raise a challenge and win a correction. Or it used to be. 

Just in time for commission changes and potential rate cuts late this summer, HUD, FHA and GSEs Fannie Mae and Freddie Mac have announced a new appraisal review policy.

HUD (U.S. Dept. of Housing & Urban Development), FHA (Federal Housing Administration), and GSEs (government-sponsored enterprises) Fannie Mae & Freddie Mac will allow borrowers the opportunity to request a re-assessment of the appraised value of their property if they assert an error was made or bias entered into the process.

The 'Reconsideration of Value' policy equires lenders to disclose to borrowers that they may request a reconsideration of value, and to provide instructions that explain the process, including what information will be required from a borrower and the expected Reconsideration of Value processing times.

Read all the details at realestateinthedistrict.com

Posted by

Susan Isaacs, Realtor

The Isaacs Team LLC

Partnering With DOMO

Compass

1313 14th Street NW DC 20005

Find us at:

realestateinthedistrict.com

Equal Housing Opportunity

Copyright - All rights reserved The Isaacs Team LLC

Comments(9)

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John Pusa
Glendale, CA

Hello Susan Isaacs | DC Real Estate Consultant very good report about new appraisal review option.

Jun 01, 2024 03:30 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good evening Susan Isaacs | DC Real Estate Consultant ,

Wow!! This is huge!! Thank you for letting us know about the Reconsideration of Value' policy. This is crucial to many buyers to understand the process. THANK YOU!

Jun 01, 2024 04:34 PM
Susan Isaacs, Real Estate Consultant

Agree, Dorie! Long overdue!

Jun 03, 2024 04:48 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker
Great information, thanks for sharing.  I hope you have a great day.
Jun 02, 2024 04:05 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Real Estate Broker

This is so important... there's always been a lot of confusion about what to do when an appraisal comes in low.

Jun 02, 2024 05:23 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Associate Real Estate Broker

Low appraisals can be disconcerting to both sides of the deal although buyers may feel they will get a bargain. If the seller's agent really feels it was low this is a good way to start the process.

Jun 02, 2024 05:30 AM
Roy Kelley
Retired - Gaithersburg, MD

Thank you very much for sharing this information.

Have a great day and a very productive week.

Jun 02, 2024 07:07 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Susan and thank you for sharing this great blog with us here in the Rain.  Have a great Sunday!

Jun 02, 2024 09:16 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

I have had quite a few bad appraisals in the last couple of years (although VA is the biggest issue for me).

Jun 06, 2024 05:59 AM
Leanne Smith

From my experience, VA appraisals do not have the "appraisal management firm" in control, but go from the certified VA appraiser directly to the VA.   I had a custom built home when built was in one city with a different zip code. Then rural boundaries changed and the house was in another zip code. The person at the VA said comps had to come from the new zip code and in that new zip code there wasn't a single comparison.

Jun 07, 2024 08:55 AM
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
The Grit and Gratitude Agent

Reconsideration of value has been an option. However now having a specific policy that now gives buyers directions is a positive move forward.

Jun 07, 2024 08:52 AM