Underwriting and appraisal

Reconsideration of value: how to challenge a low appraisal

A low appraisal can shrink your loan, wipe out your cushion or threaten the deal. If you believe the appraiser missed something, you can ask for a reconsideration of value. For Fannie Mae loans, the process now has set rules, and a well-built request matters because you usually get only one.

Reviewed November 2026 · Written for Buy Home Tips from the sources listed below

An appraisal is an opinion of value, and opinions can be wrong. An appraiser may have used a sale that was not really comparable, missed a recent renovation or recorded the square footage incorrectly. A reconsideration of value, or ROV, is the formal way to ask for a second look.

Until recently, each lender had its own ROV process. On May 1, 2024, Fannie Mae, working with Freddie Mac and HUD, published requirements for borrower-initiated ROVs to make the process more consistent. Fannie Mae's are in Selling Guide section B4-1.3-12. FHA and VA have their own rules, so ask your lender which apply.

When an ROV makes sense

An ROV works best when you can point to something specific:

factual errors, such as the wrong bedroom count, square footage or lot size
features the appraiser missed, such as a finished basement or new roof
comparable sales that are a poor match when better ones exist
adjustments that seem unsupported or inconsistent
language or reasoning that suggests the appraisal reflects discrimination

It is less likely to help if you simply believe the home is worth more because you agreed to pay more. The appraiser's job is to estimate market value, not to confirm the contract price.

What Fannie Mae requires

For loans that need an appraisal, B4-1.3-12 requires lenders to have a process for borrower-initiated ROVs that includes review, resolution and a way to appeal when you believe the value is unsupported, deficient or affected by prohibited discrimination. The lender must give you a disclosure explaining the process when it gives you the appraisal, and the disclosure must make clear that only one borrower-initiated ROV is permitted per appraisal.

Your request must include:

Required item	What to provide
Identifying details	Borrower names, property address, appraisal effective date, appraiser name and the date of your request
The problem	A description of the unsupported, inaccurate or deficient areas of the report
New data	Additional information or comparable sales, no more than five, with their data sources such as MLS numbers
The reasoning	An explanation of why the new data supports reconsidering the value

The lender must complete its own appraisal review first, have an underwriter or other appraisal expert review your request, ask you for anything missing and send a standardized request to the appraiser. Fannie Mae's FAQ adds that all ROVs must comply with its Appraiser Independence Requirements, which is why the request goes through the lender.

Choosing comparable sales

Your five comparable sales do the heavy lifting. Strong ones are:

recent, ideally closed within the last few months
close by, in the same neighborhood or a very similar one
similar, with comparable size, age, bedrooms, bathrooms, lot and condition
closed sales, not active listings or pending deals
sourced, with MLS numbers or public record references so the appraiser can verify them

Your agent can pull these. Explain in a sentence or two why each is better than the sale the appraiser used.

Worked example: a focused request

Mei is buying a $365,000 house. The appraisal comes in at $348,000. Reading it, she notices the report lists 1,640 square feet, while the county record and listing both show 1,840. Two of the appraiser's comparables are a mile away across a highway, in a different school district.

Through her lender, she submits one ROV with her name, the address, the appraisal's effective date, the appraiser's name and the date. She describes the square footage error, attaches the county record and offers three closed sales from her own subdivision within the last four months, with MLS numbers. She explains that the subdivision sales are closer in location and size.

The appraiser corrects the square footage, adds two of her comparables and revises the value to $362,000. The gap shrinks from $17,000 to $3,000, which she and the seller split.

What happens next

After the appraiser reviews the request, Fannie Mae's process calls for a revised appraisal report that includes commentary on the conclusions, whatever the outcome. If you pointed out a minor error that does not affect value, the FAQ says the appraiser still must correct it and comment. If the lender finds material deficiencies, it must work with the appraiser to correct them.

You can cancel an ROV request, according to Fannie Mae's FAQ. If the value does not change, you cannot demand a new appraisal; the lender decides whether to accept the appraiser's conclusions.

Keep an eye on your deadlines

An ROV takes time, and your contract has dates for the appraisal contingency, financing and closing. Ask your agent whether to extend any deadlines while the request is pending. Keep your other options ready:

renegotiate the price with the seller
bring additional cash to cover the gap
change the loan structure, such as the down payment
use your appraisal contingency to cancel, if you have one

The bottom line

If you believe your appraisal is wrong, a reconsideration of value lets you ask the appraiser to review specific errors and better comparable sales. For Fannie Mae loans, you get one borrower-initiated ROV per appraisal, it goes through your lender and it must include the details and data Fannie Mae lists. Make it specific, back it with sourced sales and watch your contract deadlines.

Building your ROV request

Read the full appraisal and the lender's ROV disclosure.
List specific errors or unsupported conclusions, with page references.
Pick up to five better comparable sales with their data sources.
Write a short explanation of why the new data supports a different value.
Include your name, the property address, the appraisal's effective date, the appraiser's name and the request date.
Send it to the lender, not the appraiser, and note your contract deadlines.

Questions buyers ask

What is a reconsideration of value?

It is a formal request, made through your lender, asking the appraiser to review the appraisal in light of errors you identify or additional data you provide, such as better comparable sales. The appraiser then issues a revised report with comments, whether or not the value changes.

How many reconsiderations of value can I request?

For Fannie Mae loans, one borrower-initiated ROV per appraisal report. The lender's disclosure has to make that clear.

Can I contact the appraiser directly?

You should go through the lender. Fannie Mae requires lenders to align their ROV procedures with its Appraiser Independence Requirements and to standardize communication to the appraiser.

What if the value does not change?

Fannie Mae's FAQ says the borrower cannot then require a new appraisal; whether to accept the appraiser's conclusions is the lender's decision. You can still renegotiate the price, bring more cash or use your appraisal contingency if you have one.

Sources checked for this page

Checked November 2026. Programs and limits change; confirm with the source before you rely on a figure.