And the Mistakes to Avoid When Challenging an Appraisal

When an appraisal comes in lower than expected, it can feel frustrating—especially when a deal or refinance is on the line. That’s when many homeowners and real estate agents turn to a Reconsideration of Value (ROV) request.

While ROVs can be useful, the reality is: most are denied. From an appraiser’s perspective, the reason is usually not bias or oversight; it’s because the request doesn’t present credible, supportable new information.

Let’s break down the most common pitfalls and how to avoid them.

1. Submitting Comparable Sales That Aren’t Truly Comparable

One of the most frequent issues with ROV requests is the use of poor comparables (“comps”).

Common mistakes:

• Sales from superior neighborhoods or school districts

• Larger homes with more upgrades or newer construction

• Sales outside of the subject’s market area

• Listings or pending sales instead of closed transactions

  
  

What appraisers look for:

Appraisers select comps based on similarity, proximity, and timing. If your comps don’t align with those criteria, they likely won’t hold weight.

👉 Tip: Focus on recent, closed sales that closely match the subject property in size, condition, location, and appeal.

2. Relying Too Heavily on Price Per Square Foot (PSF)

This is a big one. Many ROV requests argue:

“Homes in this area are selling for $X per square foot, so this value should be higher.”

The problem:

Price per square foot (PSF) is NOT a primary valuation method. It’s a supporting metric, not a standalone indicator of value.

Why PSF can be misleading:

• It does not account for layout, condition, upgrades, or functional utility

• Smaller homes often have higher PSF than larger homes

• It ignores lot size, location nuances, and quality differences

  
  

👉 Bottom line: A higher PSF in another sale does not automatically justify a higher value.

3. Highlighting Upgrades Without Market Support

Another common issue is emphasizing improvements like:

• New kitchens or bathrooms

• Flooring, paint, or cosmetic updates

• Outdoor features or landscaping

  
  

While these absolutely matter, the key question is:

Does the market recognize and pay for these upgrades?

Where ROVs fall short:

• No paired sales or data showing how much value the upgrade contributes

• Overestimating return on investment (ROI)

• Comparing to fully renovated homes when the subject is only partially updated

  
  

👉 Tip: Provide evidence, not just a list of improvements. Appraisers need market-based support, not cost-based assumptions.

4. Using Outdated or Irrelevant Market Data

Timing matters in real estate valuation.

Common pitfalls:

• Using sales that are too old in a changing market

• Ignoring recent declining or stabilizing trends

• Cherry-picking peak market sales

  
  

Appraiser perspective:

Appraisals reflect the market as of the effective date, not what the market was months ago.

👉 Tip: Focus on the most recent and relevant data available, especially in shifting markets.

5. Lack of Clear, Structured Communication

Some ROV requests are simply difficult to follow or lack organization.

Issues we often see:

• Long narratives without supporting data

• Emotional arguments (“the value feels too low”)

• No clear explanation of why the original comps are inferior

  
  

What works better:

• Clear bullet points

• Specific alternate comps with explanations

• Concise, fact-based reasoning

  
  

👉 Remember: Appraisers must remain objective and data-driven. Clear, logical submissions are far more effective.

6. Disputing the Value Without New Information

This is the most critical point:

An ROV is not a second opinion—it’s a review based on NEW, relevant data.

If your request includes:

• The same comps already considered

• No additional market evidence

• General disagreement with the outcome

  
  

…it is very unlikely to result in a change.

👉 Tip: Ask yourself: “What new, credible information am I providing that the appraiser may not have had?” If the answer is “none,” the ROV will likely be denied.

Final Thoughts: How to Strengthen Your ROV Request

To improve your chances of success, your ROV should be:

✔ Data-driven

✔ Supported by truly comparable sales

✔ Focused on recent, relevant market activity

✔ Clearly communicated and well-organized

✔ Based on new information—not just disagreement

Need Help Navigating an Appraisal?

At Efird Appraisals, we understand how complex and nuanced valuation can be. Whether you’re a homeowner, agent, or attorney, we’re here to provide clear, credible, and defensible valuations across North and South Carolina.

📩 Download our Free Appraisal Quick Guide to better understand the process and avoid common pitfalls.

📞 Have questions? Reach out—we’re always happy to help.

Understanding the Appraisal Process

The appraisal process is essential for various real estate transactions. It ensures that properties are valued accurately and fairly. This process involves several steps, including data collection, analysis, and reporting.

Data Collection

During this phase, appraisers gather information about the property. This includes its size, condition, and location. They also collect data on comparable properties in the area. This information is crucial for determining the property's value.

Analysis

Once the data is collected, appraisers analyze it. They compare the subject property to similar properties that have recently sold. This helps them understand market trends and pricing.

Reporting

Finally, appraisers compile their findings into a report. This document outlines the property's value and the reasoning behind it. A well-prepared report is essential for supporting the appraisal's credibility.

Common Misconceptions About Appraisals

Many people have misconceptions about appraisals. Understanding these can help you navigate the process more effectively.

Appraisals Are the Same as Home Inspections

One common misconception is that appraisals are the same as home inspections. While both assess a property's condition, they serve different purposes. An inspection focuses on the property's physical state, while an appraisal determines its market value.

All Appraisers Are the Same

Not all appraisers have the same level of expertise. It's essential to choose an appraiser with experience in your local market. This ensures that they understand the nuances that can affect property values.

Appraisals Are Always Accurate

While appraisers strive for accuracy, various factors can influence their assessments. Market conditions, property features, and available data can all impact the final value. It's crucial to approach appraisals with a realistic understanding of their limitations.

Conclusion

In conclusion, navigating the appraisal process can be challenging. By avoiding common pitfalls and understanding the process, you can improve your chances of a successful ROV request. Remember, at Efird Appraisals, we are here to help you every step of the way. Our expertise ensures that you receive accurate, unbiased valuations that stand up to scrutiny. Reach out today to learn more about how we can assist you.