Low VA Appraised Value Tidewater Initiative Arizona

Arizona VA – Tidewater Initiative

When an Arizona VA appraiser believes a home’s value is below the sales price they are required to notify the Arizona VA mortgage lender providing the VA home loan for the buyer.  This requirement to notify that value is coming in low is based on the “Tidewater Initiative” that was established in 2003.

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The Tidewater Initiative states a VA appraiser must give notice that the value for the property being VA financed is coming in lower than the home’s sales price.  A designated point of contact is notified by the VA appraiser regarding low value.  That point of contact then has 48 hours to provide additional sales data supporting the subject home’s sales price.  The point of contact (typically the buyer’s loan officer) communicates with both the buyer’s agent and the seller’s agent to collect additional data.  That new data is then forwarded to the Arizona VA appraiser with their valuation of the subject property.

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Arizona VA Appraisers Give Lender a 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.

What Happens After Providing Data to the Arizona 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.

Learn more about VA on The HOUSE Team’s VA Blog

by Jeremy House

Trackbacks

  1. […] a full VA appraisal report OR notify the VA buyers mortgage lender that they are having trouble making value meet the home’s price point.  When VA demand picks up, VA appraisers tend to respond a bit slower […]

  2. […] Conventional, FHA or USDA home loan appraisal process.  From appraiser assignment to the “tidewater initiative” to allotted turntimes to only assigning appraisals on Mondays the VA appraisal process is in […]

  3. […]  VA loan appraisals allow a rebuttal feature that is unique. This different process known as the Tidewater accomplishes the same thing.  Either way, rebuttals and tidewaters have a low success rate. […]

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