Kairos Value Appeal Form
For a variety of reasons, a broker or borrower may disagree with the appraiser’s value estimate. Kairos has instituted this process to allow the broker a course of action to provide additional information which may cause the appraiser to reconsider the value estimate and allow Kairos to maintain adherence to the Dodd-Frank Act and the Appraiser Independence Requirements.
In order to request a value reconsideration from an appraiser, the value appeal process requires the borrower or broker to provide full MLS printouts of not more than three additional comparable sales. This data and a completed Value Appeal Form should be sent to the Review Appraiser for possible reconsideration of value by the original appraiser. In addition, it should be noted that the value appeal process is to be completed in one submission. Multiple submissions for value appeals on the same property are not allowed under the value appeal policy.
When a broker believes that the value estimate is too low/high, the first step to initiate a value appeal is for the broker to obtain full MLS printouts of not more than three closed sales, which the broker feels represent “better” comparables than those used by the original appraiser.
Once the MLS data has been gathered, the broker must “grid” the data from these new comparables using the Value Appeal Form. The Value Appeal Form is designed to help the broker determine if the new sales provided actually represent better data than that used by the appraiser in the appraisal report. The Value Appeal Form along with the MLS printouts should be sent to the Review Appraiser at Kairos. The email subject line should contain the Loan Number, Borrower Name, and Property Address.
Acceptable documentation for a reconsideration of value includes:
1. Full MLS printouts of no more than three additional comparable sales, from the subject market area, which are similar and proximate to the subject, and recent (same time frame as the comparables included in the appraisal report.
2. A legible copy of a different appraisal report on the subject property, including colored photos of the subject and comparable sales completed within the past four months.
3. Identified significant errors in the original appraisal report regarding the subject or comparables, which may have an effect on the value and/or marketability.
Unacceptable documentation for a reconsideration of value includes:
1. Inclusion of personal property such as above ground pools
2. Sales that require excess location, quality, appeal, or condition adjustments
3. Listings or assessor’s data
4. Lists of sales with limited information similar to realtor market surveys
5. SiteX and other nonverifiable data
6. Any other item that does not contain enough detail to determine the validity of a likely comparable after reviewing the information required, if the additional data provided appears to potentially warrant an increase/decrease in value for the subject, the Appraisal Review Department will contact the appraiser requesting that he/she review the additional data for a reconsideration of value. After reviewing the information provided, if it does not appear to warrant a value increase/decrease, the Appraisal Review Department will respond to the broker with the reasons for stopping the value appeal process prior to submitting the data to the original appraiser, the information will not be sent to the original appraiser, and the value appeal will be closed.