Appraisal Reconsideration - Steps To Follow - DFW Only
Step 1: Pull the AMC's Reconsideration Form:
- Pendo Reconsideration Form-Click Here
- Appraisal MC Form-Click Here
- Mortgage Valuation Form-Click Here
For Pendo the requirements are:
- MLS #
- Date of Sale
- Property Address
- Reason for the reconsideration
Step 2: Pull Comps from NTREIS.net
- MP can pull your comps and send a spreadsheet
Criteria for pulling viable comps:
- Distance to the subject property- should be no more than the furthest comp in the appraisal. Depends on the density but no more than 2 miles is a rule of thumb.
- Age of sale - should not be older than any comp in the appraisal. No more than a year from the sale date is a rule of thumb.
- Major Roads: Don't cross major roads as that can impact value significantly.
- Subdivision: Try to stay in the subdivision if a PUD. Different subdivisions can have different values.
- Price Per Sq Ft is a good indicator of value and will need to be added to your comparable spreadsheet.
Step 3: To evaluate the comps focus on:
- Distance to subject
- The age of the comparable sales need to be similar to the age used in the appraisal
- The age of the property compared to the subject needs to be similar. New construction cannot be compared to a 25-year-old home.
- # of Bedrooms and Baths needs to be similar - adjustments will be made to add or remove rooms vs. the subject.
- Square footage needs to be reasonably close
- Lot size needs to be close
- The garage size needs to be close
- Renovations matter but are hard to value and pretty subjective.
- Pools are typically big adjustments with the value being the same for all properties in the appraisal. Comparing like properties with pools simplifies the analysis.
- Price Per Sq Ft: This is a good indicator of basic value and will need to be added to your spreadsheet.
Step 4:
- Submit your reconsideration form - Example Below
This is an screenshot of a bunch of comps:
- In my opinion (MP) this appraiser did a terrible job on this appraisal. He used the lowest per square foot comps in the area to provide the valuation and the appraisal did come in lower than expected.
- I will report back about the reconsideration.
- For this appraisal - Click Here
