Key takeaways
- Provide appraiser a comp packet upfront.
- Reconsideration of value (ROV) works ~30% of time.
- Second appraisal is option of last resort.
- Cash-in covers shortfall and preserves refi.
- Walk if shortfall destroys the deal.
Core concepts
Why low?
Comp selection, condition adjustment, market shift.
ROV process
Submit better comps with written rationale.
Second appraisal
Allowed at borrower cost on some loans.
Step-by-step framework
- 1Prep comp packet.
- 2Greet appraiser on-site.
- 3File ROV within 48 hours of low appraisal.
- 4Decide cash-in vs walk.
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Common mistakes to avoid
- Skipping comp packet.
- Aggressive ROV without new data.
- Cash-in on bad deal.
Frequently asked questions
How often is appraisal low?
10–20% of BRRRR refis.
Does ROV work?
About 30% when supported by new comps.
Cost of second appraisal?
$500–800.
Cash-in tax-deductible?
No — it's basis.
Action checklist
- ☐Comp packet prepared.
- ☐Appraiser walkthrough.
- ☐ROV ready if needed.
- ☐Cash reserve for shortfall.
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