What Is Tidewater on a VA Appraisal?
Updated: Oct 25
If I call you and say, “We’re in Tidewater,” please don’t panic. It does not mean the appraisal came in low. It means the VA appraiser believes the available market data may not support the contract price. Before the appraiser completes the report, VA gives us an opportunity to provide additional market data for the appraiser to consider.
This is one of the things I actually appreciate about the VA appraisal process. A potential value issue does not necessarily show up as a surprise after the appraisal is already finished. There is a process that can give us a chance to address it first.
So What Exactly Is Tidewater?
During a VA appraisal, if the appraiser believes the estimated market value may come in below the sales price, the appraiser is required to notify the designated Tidewater point of contact before completing the appraisal. Once that happens, we have two business days to provide additional sales data or other relevant market information for the appraiser to consider. The appraiser then analyzes the information we submit and completes the appraisal.
Tidewater is not a guarantee that the appraiser will support the contract price. But it gives us an opportunity to make sure relevant market information is considered before the value is finalized.
What Happens When I Get a Tidewater Notice?
I get to work. I am going to contact the agents quickly because this is not the time for an email to sit unanswered for two days. We need to look at the sales the appraiser may already be using, determine whether there are better or more relevant comparable sales, and identify any information about the property or market that may help explain the contract price.
Then we need to package that information in a way that is actually useful to the appraiser. The goal is not to overwhelm the appraiser with paperwork. The goal is to give them credible information they can analyze.
If You’re a Realtor, Don’t Just Send Me a List of Comps
This is where I really need my Realtor partners involved. VA guidance specifically identifies information that can be useful for a potential comparable sale, including the address, sales price, date of sale, gross living area, listing information when applicable, and other information that helps the appraiser determine whether the sale is actually comparable. So I don’t necessarily need ten MLS sheets thrown into an email.
I would rather have a few strong comps with an explanation of why they matter. Is it in the same neighborhood? Is it a more similar size, condition or age? Did it have a feature that makes it particularly relevant? Is there something happening in that specific market that the appraiser should know? That context can matter.
When I call you about Tidewater, I want us working together to build the strongest response we reasonably can within the time we have.
This Is Where Your Lender Matters
Having a process available and having a lender who actually knows how to use it are two different things. I have seen VA transactions where a low value is essentially treated like the end of the conversation. I have also seen Tidewater handled like nothing more than, “Hey Realtor, send us some comps.” That is not how I want to handle your loan.
When Tidewater comes in, I want everyone moving quickly. I am going to communicate with the agents, explain what we are looking for, and help determine whether there is meaningful information to submit. And if the appraisal is ultimately completed below the contract price, I am not going to automatically treat that as the end either. That is when we look at whether a Reconsideration of Value makes sense.
Neither process guarantees that we will get the contract price. My job is not to promise a value. My job is to understand the options available, communicate clearly, and make sure we use the appropriate process when there is credible information worth considering.
Tidewater and a Reconsideration of Value Are Not the Same Thing
These terms get mixed together all the time, but they happen at two different points in the VA appraisal process. Tidewater happens before the appraisal is finalized. The appraiser is signaling that the value may be below the sales price, and there is a two-business-day opportunity to submit additional market data for consideration. A Reconsideration of Value, commonly called an ROV, happens after the appraisal has been completed and the Notice of Value has been issued. If the Veteran believes there is credible information supporting a different value, the Veteran may request an ROV through the VA process.
Think of it this way: Tidewater: “Before I finalize this value, show me anything relevant I may need to consider.” ROV: “The value has been issued, and we have information we believe supports reconsidering it.”
They are separate opportunities, and knowing the difference matters.
Does Tidewater Mean Something Is Wrong With the House?
No. Tidewater is about value, not a repair issue. A VA appraisal also addresses Minimum Property Requirements, but Tidewater itself is triggered because of a potential valuation issue. That distinction is important because “the VA appraisal has a problem” can mean very different things. A property-condition question and a value question do not necessarily have the same solution.
What if the Appraisal Still Comes in Low?
First, a low appraisal does not automatically mean the transaction is over. Depending on the circumstances, the parties may consider negotiating the sales price, the buyer may decide to cover some or all of a difference with their own funds, or the Veteran may request a Reconsideration of Value when there is credible information supporting one. VA also requires an escape clause in a VA purchase contract that gives the Veteran protections when the reasonable value is below the contract price.
The right next step depends on the actual transaction, which is why I want the buyer and both agents communicating before anyone assumes the deal is dead.
Why I Care So Much About This
Knowing that someone “does VA loans” is not enough for me. I want to know what happens when the easy VA loan suddenly is not easy. What happens when the value is questionable?
What happens when an appraiser calls out something we need to understand? What happens when the Veteran already has another VA loan? What happens when a guideline is misunderstood?
Those are the moments when knowing the VA process, asking questions and communicating with everyone involved really matters. The VA loan is not automatically the difficult part. Sometimes the difference is simply knowing how to use the benefit you are working with. If you are a buyer or Realtor and you receive a Tidewater notice, don’t assume the worst. Let’s look at the data, use the process VA gives us, and figure out the next step.
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