VA home loan rules are unique. So to is the method VA uses to determine and address possible low value on an Arizona VA appraisal. In fact, VA applies arguably the most logical low appraised value process in the industry. This process is based on the “Tidewater Initiative” from 2003.
Low Value VA Appraisals
According to the Tidewater Initiative VA appraisers must notify someone a subject property’s value appears to be below the home’s sales price. Furthermore, VA requires the VA appraiser alert 1 designated point of contact of the possible value issue. Typically, the point of contact is the VA buyer’s loan officer.
From there, the designated point of contact has 48 hours to provide the VA appraiser with additional sales data supporting the subject home’s sales price. Upon receiving the low value notification, the designated point of contact informs the buyer’s and seller’s agents. They then work to provide new data supporting the sales price. Once the point of contact receives the additional supporting data they forward it to the Arizona VA appraiser for consideration.
Finally, the VA appraiser reviews any and all new data provided. It is important to remember that ALL of the above takes place prior to the VA appraiser finalizing their appraisal. In fact, that is the unique element to this process. Other loan types deliver a low value appraisal without a warning leaving them to deal with rebuttals post completion.
Arizona Low Value VA Appraisal Heads Up (48 hrs)
The 48 hour advance notice of low value gives the lender and both real Estate Agents time to gather data supporting the sales price of the subject property. Typically, the seller’s and/or the buyer’s Real Estate Agent provide recent home sales data. They may also provide information about the subject property’s upgrades/features to support value.
Providing Data to the Arizona VA Appraiser?
The VA appraiser reviews the new data provided by the Real Estate Agents. After considering the new data, the VA appraiser completes the VA appraisal and delivers it to the lender that is providing financing for the VA buyer.
There is no guarantee that any of the new data provided to the appraiser will impact their valuation of the subject property. Ultimately, the appraiser has final say when it comes to evaluating a homes market value. A VA lender may also ask for a reconsideration of value based on this notice issued by VA.