The VA Appraisal

I want to concentrate on the appraisal process when it comes to the tidewater process

Let’s say the lender has already ordered your appraisal, and the VA has assigned an appraiser. The VA has experienced appraisers in its marketplace. They are required to have a certain level of experience appraising properties before they are permitted to apply for the VA’s appraisal panel. Since they are associated with the VA, they will do an exceptional job. The VA holds its appraisers to high standards. 

Purpose of VA Appraiser

 Overpaying for a home when the market is fluctuating can happen. The VA appraisal process is there to protect you from this. We want our veterans to refrain from using up their benefits and entitlement by going under contract and purchasing a home that will make them upside down. The best way to protect you from this is through the VA appraisal process. While it may seem frustrating and scary, trust that the VA has your back throughout the process. 

Appraisal Process

The VA will appoint an appraiser who will contact the listing agent or the seller of the home you are trying to purchase. Then the appraiser will set an appointment to review that home. 

  1. They will review the property less in-depth than an inspector and inspect the inside and outside of the home. 
  2. Next, they compare your property to properties in the surrounding area. Comparing the prices that houses nearby sold for is also a part of the process.
  3.  Finally, the appraiser will dig into data on houses currently on the market to see what price they are selling. In rural areas with fewer houses on the market, the VA does permit those appraisers to go back in the records for up to a year to look at data that helps support your home purchase. 

The data collected will justify and support you as a veteran. They don’t want to look at the purchase contract and comps, tell you no and send you on your way. Turning you away is not their mission. Instead, they aim to ensure you are protected and get into a home appropriately priced for you. To ensure this, they will look at all the data in the neighborhood. Next, they review the features and structure of the home that you’re purchasing and compare it to other houses in the area. Finally, the whole process aims to determine a rough estimate value

Tidewater Appraisal

If the data comes below the value of what is on your purchase contract, they’re going to initiate tidewater. That means they’re going to reach out to the listing agent and buyer’s agent, and they’re going to say hey guys, I’m struggling to find what this house truly is worth. Can you help provide any data you have? The lender will reach out and let everyone know that the appraiser is called tidewater. Let’s help them and provide supporting evidence showing the accurate value. They typically give about 48 hours for that to happen. Agents are always very responsive in this process. Your lender will be there to guide you, and they’re also there to talk to the real estate agents when the appraiser calls for tidewater. 

 They do not give an estimate of the value of what the house will appraise. They tell them hey guys; this is a tidewater initiative. I need help finding the value that you want on this contract. Please help me and provide the evidence required. Once we give the final report, the appraiser should provide their last report within a couple of days. They will review the data every agent gave them and the data you, the Veteran, gave them. If the sellers want to give them anything, they check everything provided to them. The appraiser will restructure and reanalyze how they are appraising this house with all the extra support you gave them. Maybe they missed a comp in the neighborhood. They’re human. They could make mistakes, have oversight, or miss something. The appraiser will review the input they receive and issue a final report, which is the conclusion of the tidewater process.