What Is the VA Tidewater Process? | Complete Guide

Want to see what you qualify for? I can run your numbers and give you a clear answer quickly.

What Is the VA Tidewater Process?

The VA Tidewater process gives the lender and real-estate professionals an opportunity to provide additional market evidence before a VA appraiser completes an appraisal that may fall below the purchase price.

Tidewater is not a completed low appraisal.

It is an advance warning that the appraiser’s developing opinion of value may not support the pending sales price.

When Tidewater is invoked:

Appraiser contacts the lender’s designated point of contact
Appraiser states that additional market support is needed
Lender notifies the appropriate transaction parties
Realtors research and submit relevant comparable sales
Appraiser reviews the submitted information
Appraiser completes the report
Notice of Value establishes the final VA reasonable value

The appraiser must consider credible information submitted through the process.

The appraiser is not required to increase the value merely because additional comparable sales were provided.

Why Is It Called Tidewater?

The term originated from a VA appraisal procedure developed in the Tidewater region of Virginia.

The procedure was designed to provide a structured opportunity to address a possible valuation shortfall before the appraiser completed the report.

VA later expanded the process more broadly.

Today, “Tidewater” generally describes the nationwide VA procedure used when an appraiser believes the developing value may be below the pending sales price.

When Does Tidewater Occur?

Tidewater occurs during the appraisal process and before the appraiser finalizes the report.

The appraiser has generally:

Inspected the property
Researched the market
Selected potential comparable sales
Analyzed the subject property
Begun developing an opinion of value
Identified a likely shortfall

At that point, the appraiser contacts the lender-designated person listed in the VA appraisal assignment.

The appraiser does not normally wait until the report is complete and then retroactively invoke Tidewater.

Does Tidewater Mean the Appraisal Is Low?

It means the appraiser currently lacks sufficient support for the purchase price.

The final value has not yet been established.

After reviewing additional information, the appraiser may conclude that the property value:

Supports the purchase price
Supports a higher value than originally indicated
Remains below the purchase price
Requires additional research or clarification

The transaction should be treated seriously, but the parties should not announce that the “appraisal came in low” before the report and Notice of Value are complete.

Will the Appraiser Disclose the Developing Value?

Generally, no.

During Tidewater, the appraiser alerts the lender that the developing value may be below the sales price but does not disclose the preliminary opinion of value.

The appraiser generally does not provide:

Estimated value
Amount of the anticipated shortfall
Selected comparable sales
Proposed adjustments
Final appraisal conclusions
Draft report

The process is designed to gather additional market evidence without turning the appraisal into a negotiation over a preliminary number.

The veteran, seller, and Realtors may therefore know that a possible value problem exists without knowing whether the anticipated shortfall is:

A few thousand dollars
Tens of thousands of dollars
A substantial portion of the purchase price

Who Receives the Tidewater Notice?

The appraiser contacts the lender-designated point of contact identified in the VA appraisal request.

That person may be:

Staff Appraisal Reviewer
Appraisal desk
Appraisal management contact
Loan processor
Loan officer
Another authorized lender representative

The designated point of contact should immediately notify the people responsible for assembling market evidence.

These may include:

Buyer’s Realtor
Listing agent
Veteran
Loan officer
Processor
Appraisal department

The Realtors generally possess the strongest access to:

Multiple Listing Service data
Closed-sale details
Property photographs
Seller concessions
Listing history
Neighborhood information
Off-market transaction information

How Much Time Is Allowed to Respond?

The Tidewater process generally provides a brief response period—commonly two business days from notification—for the lender’s designated point of contact to submit additional information.

The exact deadline should be confirmed immediately when the notice is received.

The transaction parties should not assume they have until:

Contract closing date
Appraisal due date
End of the week
Notice of Value
Final underwriting

If the information is not provided by the stated deadline, the appraiser may complete the report using the information already available.

VA’s current appraiser training addresses the Tidewater notification, response, and review process. VA Tidewater and reconsideration-of-value training

Why Is the Response Period So Short?

The appraiser has already inspected the property and is attempting to complete the report within VA’s required timetable.

Tidewater is intended to provide a focused opportunity for additional evidence—not restart the entire appraisal assignment.

The parties should be prepared before the appraisal inspection by identifying:

Strongest closed comparable sales
Recent neighborhood sales
Relevant competing neighborhoods
Material property improvements
Unusual features
Off-market sales
Correct property data

A Realtor who waits until Tidewater is invoked to begin reviewing the market can lose valuable time.

What Should the Lender Do First?

Once Tidewater is invoked, the lender should:

Record the notification date and time
Confirm the submission deadline
Identify the authorized submission method
Notify both real-estate agents
Request a focused comparable-sales package
Verify property information
Remove duplicate or irrelevant evidence
Submit the response through the proper channel
Preserve the submission in the loan file
Allow the appraiser to complete the analysis independently

The lender should serve as the central point of communication.

Multiple people sending competing packages directly to the appraiser can create confusion and appraisal-independence concerns.

What Should the Realtors Do?

The buyer’s and seller’s agents should work quickly to identify market evidence that genuinely supports the contract price.

Their analysis should answer:

Are there better closed comparable sales?
Did a relevant sale close after the appraiser began researching?
Are there nearby private or off-market sales?
Is the subject in a market area different from what public records suggest?
Are the subject’s renovations accurately documented?
Is the reported square footage correct?
Does the property have a view, location, lot, or feature not reflected in the available data?
Did the contract include significant personal property or concessions?
Are there errors in the MLS or county records?

The goal is not to overwhelm the appraiser.

It is to provide the best available evidence efficiently.

What Makes a Strong Comparable Sale?

A strong comparable sale is generally:

Closed
Recent
Near the subject
In the same competitive market
Similar in design
Similar in age
Similar in size
Similar in condition
Similar in quality
Similar in lot characteristics
Similar in amenities
Properly verified

Few properties are identical.

The issue is whether the sale is sufficiently comparable and whether its differences can be reasonably analyzed.

A comparable one mile away may be more useful than a sale across the street if the nearby property is a different:

Property type
Age
Quality
School district
Market segment
Lot category
Condition
Legal use

How Recent Should the Comparable Sales Be?

Recent closed sales generally provide the strongest evidence.

The preferred timeframe depends on:

Market activity
Property type
Number of available sales
Rural versus urban location
Market changes
Property uniqueness
New-construction activity

A sale from the previous three months may be highly relevant.

An older sale may still be useful when:

Property is unique
Rural market has few transactions
Comparable acreage is limited
Older sale is significantly more similar
Market adjustments can be supported

A recent but dissimilar sale is not automatically stronger than an older, highly comparable sale.

How Close Should the Comparables Be?

Proximity matters because nearby properties often share:

Schools
Access
Amenities
Taxes
Market perception
Neighborhood appeal
Land characteristics
Buyer demand

There is no universal rule requiring every comparable to be within one mile.

A wider search may be appropriate for:

Rural properties
Acreage
Luxury homes
Custom construction
Manufactured homes
Barndominiums
Waterfront properties
Historic homes
Unique architecture
Low-sales markets

When using a distant comparable, the submission should explain why the property competes with the subject.

Closed Sales Versus Active Listings

Closed sales generally provide the strongest evidence of market value because they show what buyers actually paid.

Active listings can help demonstrate:

Current competition
Market ceiling
Available inventory
Seller expectations
Price reductions
Marketing time

Active listings do not establish completed transactions.

A seller can list a property at any price.

Pending sales may be useful when reliable contract information is available, but the final sales price may remain confidential until closing.

Tidewater submissions should prioritize verified closed sales.

Can the Original Listing Price Support the Value?

The subject’s list price alone does not establish market value.

A home can be listed:

Above market
Below market
At an aspirational price
At a price designed to create multiple offers
Based on an inaccurate comparative market analysis

The executed purchase contract is evidence of buyer and seller agreement, but it does not require the appraiser to conclude that the agreed price equals market value.

The appraiser must develop an independent opinion.

Can Tax-Assessed Value Be Used?

Tax-assessed value is generally weak evidence for a mortgage appraisal.

Tax assessments may:

Lag current market conditions
Use mass-appraisal methods
Reflect exemptions
Apply valuation caps
Contain incorrect property data
Serve taxation rather than lending purposes

In Texas, homestead appraisal caps can create a particularly large difference between assessed value and current market value.

The appraisal should be supported by market transactions rather than the property-tax bill.

Can Online Home Values Be Submitted?

Automated online estimates are generally not persuasive Tidewater evidence.

They may rely on:

Public records
Prior sales
Broad market models
Inaccurate square footage
Unverified property characteristics
Limited condition information

A Zestimate or similar estimate does not replace closed comparable sales and professional market analysis.

The package should be built from verifiable property data.

Text a Question

If you want help walking through your specific situation, I can run the numbers with you.

Start Your Preapproval

How Many Comparables Should Be Submitted?

Quality matters more than quantity.

A focused response may contain a small number of highly relevant comparable sales.

Submitting ten, twenty, or thirty weak sales can:

Hide the strongest evidence
Waste the response period
Create contradictory conclusions
Introduce lower sales
Make the package harder to analyze
Suggest that no truly comparable properties exist

The transaction parties should prioritize the sales most likely to affect the appraiser’s analysis.

Three strong comparables can be more persuasive than fifteen marginal ones.

What Information Should Accompany Each Comparable?

A useful comparable-sales package may include:

Complete MLS sheet
Property address
Closed sales price
Closing date
Contract date when available
Original list price
Final list price
Days on market
Seller concessions
Gross living area
Site size
Year built
Bedroom and bathroom count
Garage or carport
Pool
Condition
Quality
Renovation details
Property photographs
Distance from subject
Explanation of relevance
Verification source

The submission should identify why each sale is superior to or complements the information likely available to the appraiser.

Should the Realtors Suggest Adjustments?

A Realtor may explain meaningful differences, but unsupported adjustment amounts can weaken the submission.

For example, simply stating:

Pool is worth $100,000
Extra bedroom is worth $50,000
Acre is worth $75,000
Renovation adds dollar-for-dollar cost

does not establish market-supported adjustments.

A stronger analysis may compare paired or grouped sales demonstrating how buyers in that market react to the feature.

An adjustment reflects market contribution—not necessarily:

Construction cost
Replacement cost
Seller’s investment
Insurance value
Personal preference

How Should Renovations Be Documented?

The submission may include:

Improvement list
Completion dates
Before-and-after photographs
Permits
Contractor invoices
Material receipts
Architectural plans
Scope of work
Builder documentation
Energy improvements
Updated square footage
Certificate of occupancy

The most useful information clearly connects the improvement to:

Condition
Quality
Functionality
Market appeal
Comparable selection

A $100,000 renovation does not automatically create $100,000 of additional market value.

The appraiser must analyze buyer reaction.

What if the Owner Completed the Work?

Owner-completed improvements may still contribute value.

The appraiser may need information showing:

Work was actually completed
Materials used
Quality
Permits when required
Legal compliance
Completion date
Photographs
Market acceptance

Useful documentation can include:

Receipts
Paid material invoices
Permits
Inspection approvals
Photographs
Detailed improvement log
Professional certifications
Property records

The owner’s labor cost does not have to appear on a contractor invoice for the completed improvement to affect value.

The market determines the contribution.

Can Off-Market Sales Be Used?

Potentially.

An off-market sale can be useful when it is:

Closed
Arms-length
Properly verified
Similar to the subject
In the same competitive market

The submission may need evidence such as:

Recorded deed
Settlement statement
Multiple Listing Service history
Broker confirmation
Public transfer record
Parties’ verification
Reliable property data

A private transfer between relatives may not reflect ordinary market value.

The circumstances of the sale matter.

Should the Purchase Contract Be Reviewed?

Yes.

The appraiser should have the complete executed contract and relevant amendments.

The contract may reveal:

Purchase price
Seller concessions
Repair allowances
Personal property
Financing concessions
Closing-cost assistance
Non-market terms
Related-party transaction
Sale of furniture or equipment
Unusual contingencies

A contract price that includes substantial personal property does not mean the real estate supports the full amount.

The lender should ensure the appraiser has the final relevant contract information.

Seller Concessions and Tidewater

Seller concessions can affect the analysis when they exceed what is typical for the market.

Possible concessions include:

Closing-cost assistance
Discount-point payment
Rate buydown
Repair credit
HOA payment
Debt payoff
Personal property
Upgrade package
Commission arrangement

The appraiser may analyze whether the sales price was influenced by concessions.

A higher contract price paired with unusually large concessions may not represent the same cash-equivalent value as a transaction without those concessions.

Property Data Errors

Tidewater is also an opportunity to identify material factual errors before the appraisal is complete.

Possible errors include:

Incorrect square footage
Wrong lot size
Wrong bedroom count
Missing bathroom
Missing garage
Incorrect year built
Unrecognized addition
Incorrect school district
Wrong subdivision
Missing view
Incorrect acreage
Incorrect property type
Outdated condition information

Corrections should be supported with reliable documentation.

The appraiser should not be expected to accept an unsupported assertion that public records are wrong.

Gross Living Area Disputes

Square-footage disagreements are common.

Different sources may show different measurements because of:

County records
Builder plans
Prior appraisal
Realtor measurements
Appraiser measurements
Enclosed patio
Garage conversion
Addition
Low ceiling height
Below-grade area
Detached space

Not every finished area qualifies as gross living area.

The appraiser may separately classify:

Above-grade living area
Basement
Detached guest house
Accessory dwelling unit
Enclosed porch
Finished garage
Nonpermitted addition

A prior listing’s square footage does not automatically control the appraisal.

School District and Neighborhood Boundaries

Comparable sales across a street may compete in different markets when the boundary changes:

School district
Municipality
Taxing jurisdiction
Subdivision
Gated community
Flood exposure
Utility service
Land restrictions

The Realtor should explain market boundaries using objective information.

A statement that buyers “prefer this neighborhood” is stronger when supported by:

Consistent price differences
Sales activity
Market time
School assignment
Amenity access
Lot characteristics

Acreage and Rural Properties

Tidewater responses for rural properties require careful comparable selection.

The analysis may need to consider:

Total acreage
Usable acreage
Topography
Road access
Water availability
Septic
Outbuildings
Agricultural use
Restrictions
Floodplain
Mineral rights
Distance to employment
Marketability

A ten-acre property is not automatically comparable to another ten-acre property.

The quality and utility of the land can differ substantially.

A broader search area and older sales may be reasonable when the market has limited activity.

New Construction

A new-construction Tidewater response may include:

Recent builder sales
Competing new developments
Model matches
Builder upgrades
Lot premiums
Incentives
Spec-home sales
Construction plans
Cost breakdown
Comparable resales
Market absorption

Builder incentives should be clearly disclosed.

A builder’s base price may not equal the final property value after:

Lot premium
Structural options
Design upgrades
Financing incentives
Closing-cost contributions

The appraiser analyzes the complete transaction.

Manufactured Homes

Manufactured-home comparable sales should ideally reflect similar:

Construction type
Age
Size
Land ownership
Foundation
Title treatment
Condition
Location
Site improvements
Market acceptance

A site-built home is not automatically an appropriate substitute for a manufactured-home comparable.

The Tidewater package should accurately identify whether the property is:

Manufactured
Modular
Site built
Single-wide
Multiwide

Misclassification can affect both value and VA property eligibility.

Condominiums

Comparable units should ideally be drawn from:

Same project
Similar competing project
Same unit type
Similar floor
Similar view
Similar condition
Similar amenities

Sales in the same project may still differ because of:

Renovation
View
Floor level
Parking
Balcony
Unit orientation
HOA dues
Special assessments

A condominium unit can also face separate VA project-approval requirements regardless of value.

Unique Properties

Tidewater can be particularly important for:

Barndominiums
Historic homes
Log homes
Luxury homes
Waterfront homes
Large-acreage properties
Properties with multiple dwellings
Highly renovated homes
Unusual architecture
Homes with extensive workshops
Rural custom properties

The response should explain why the selected comparables compete with the subject despite apparent differences.

Geographic proximity alone may be less important than functional and market similarity.

What Does the Appraiser Do With the Tidewater Package?

The appraiser reviews the submitted information and determines whether it affects:

Comparable selection
Adjustments
Market analysis
Property characteristics
Condition
Final opinion of value

The appraiser may:

Use a submitted comparable
Discuss but not use it
Correct a factual error
Expand the market analysis
Adjust the developing value
Leave the analysis unchanged

The completed report should reflect appropriate consideration of relevant information.

The appraiser does not have to provide a line-by-line rebuttal to every weak or redundant submission.

Does the Appraiser Have to Use the Submitted Comparables?

No.

The appraiser must independently determine whether each sale is:

Comparable
Verifiable
Relevant
Reliable
Consistent with appraisal standards

A submitted sale may be rejected because it is:

Too old
Too distant
Different property type
Different market area
Active rather than closed
Heavily renovated
Distressed
Non-arms-length
Incorrectly reported
Already considered
Inferior to the appraiser’s selected sales

The purpose of Tidewater is consideration—not compelled acceptance.

Will the Appraiser Explain Why a Sale Was Rejected?

The appraisal may discuss submitted information when necessary to support the final analysis.

The amount of explanation can depend on:

Relevance of the sale
VA requirements
Appraisal report
Number of submissions
Material effect on value

A sale that appears highly relevant but is omitted without adequate explanation may become part of a later reconsideration-of-value request.

What Happens After the Tidewater Response?

After the submission deadline, the appraiser completes the report.

The appraisal then goes to:

Lender’s Staff Appraisal Reviewer, or
VA reviewer when applicable

The reviewer evaluates the appraisal and issues the Notice of Value.

The final outcome may show:

Value supports the purchase price
Value remains below the purchase price
Property repairs are required
Additional inspection is required
Appraisal correction is required
Property presents an eligibility concern

Tidewater addresses value.

It does not eliminate the appraiser’s responsibility to report property-condition concerns.

What Is the Notice of Value?

The Notice of Value establishes VA’s reasonable value for the property and identifies applicable appraisal-related conditions.

It may include:

Reasonable value
Required repairs
Inspections
Private-road conditions
Well or septic requirements
Construction requirements
Other property conditions

The Notice of Value—not the Tidewater notification—provides the completed VA valuation result.

See VA Notice of Value Explained.

What if the Final Value Supports the Purchase Price?

If the reasonable value supports the contract price, the lender continues processing the loan.

The file may still need to address:

VA-required repairs
Home inspection findings disclosed to lender
Title
Insurance
Flood zone
Condominium approval
Well or septic
Private road
Final underwriting
Closing conditions

A supported value is only one part of property approval.

What if the Final Value Is Still Low?

The veteran and seller may consider several options.

Seller Reduces the Price

The seller may agree to reduce the price to the VA reasonable value.

Parties Renegotiate

The parties may agree to a price between the original contract price and reasonable value.

Veteran Pays the Difference

The veteran may contribute verified funds for the amount above VA reasonable value.

Parties Restructure the Transaction

Permitted credits, concessions, or loan terms may be revised.

Veteran Requests Reconsideration of Value

A formal ROV may be submitted when credible additional support exists.

Veteran Terminates

The VA Escape Clause may permit termination without forfeiting earnest money because of the value shortfall.

The purchase contract and legal deadlines should be reviewed before selecting an option.

Can the Veteran Pay Above the VA Value?

Yes.

VA does not prohibit the veteran from proceeding at a purchase price above the established reasonable value.

The VA loan amount is generally based on the lower of:

Purchase price
VA reasonable value

The veteran must generally bring the difference from an acceptable, verified source.

The borrower should evaluate:

Available reserves
Immediate equity position
Market conditions
Inspection findings
Repair costs
Future resale
Seller negotiation
Strength of an ROV

Paying above value is a financial decision—not an underwriting shortcut.

The VA Escape Clause

The VA Escape Clause protects the veteran when the VA reasonable value is below the contract price.

When applicable, the veteran may:

Negotiate a lower price
Proceed and pay the difference
Terminate without forfeiting earnest money because of the low VA value

VA requires the clause in a VA purchase contract when the contract is signed before the Notice of Value is received. VA Escape Clause guidance

The clause does not automatically permit termination for unrelated reasons such as:

Interest rate
Inspection concern
Loan denial
Repair dispute
Change of mind

Those issues depend on the remaining contract terms and applicable law.

Tidewater Versus Reconsideration of Value

The two procedures occur at different times.

Issue	Tidewater	Reconsideration of Value
Timing	Before appraisal is finalized	After value is established
Trigger	Appraiser anticipates possible shortfall	Veteran or interested party disputes final value
Purpose	Provide additional market evidence early	Formally request value reconsideration
Known value	Generally not disclosed	Final value is known
Review	Original appraiser considers information	SAR, appraiser, or VA reviews under applicable authority
Best evidence	Strong closed comparable sales and factual corrections	New evidence, material errors, stronger comps, supported analysis

Tidewater is the first and often strongest opportunity to affect the valuation analysis.

An ROV should not merely repeat the same weak information.

When Is an ROV Appropriate After Tidewater?

An ROV may be appropriate when:

Strong comparable sale was unavailable during Tidewater
Material factual error remains
Submitted comparable was not adequately considered
Appraiser used incorrect square footage
Significant renovation was missed
Wrong market area was analyzed
Adjustment appears unsupported
Relevant closed sale emerged
Report contains internal inconsistency

An ROV may be weak when it only states:

Seller needs the higher price
Buyer agreed to the price
Online estimate is higher
Tax value is higher
Owner spent a certain amount on improvements
Another appraiser might disagree

See VA Reconsideration of Value Explained.

Can the Lender Order a Second Appraisal?

Generally, no.

A lender cannot order a second VA appraisal merely because the Tidewater response failed to produce the desired value.

The proper process is:

Review appraisal for errors
Submit an ROV when justified
Obtain VA review when applicable
Negotiate the transaction
Proceed with additional cash
Terminate when contractually permitted

Appraisal shopping undermines appraiser independence.

Changing lenders does not automatically authorize a new VA appraisal.

Does Tidewater Delay Closing?

It can.

Possible sources of delay include:

Short response window
Comparable research
Appraiser review
Appraisal completion
SAR review
ROV preparation
Seller negotiation
Contract amendment
Additional cash verification
Repair conditions

A well-organized response may limit the delay.

The appraisal should be ordered early enough to allow time for Tidewater without placing the closing date in immediate jeopardy.

Can the Seller Cancel Because of Tidewater?

Tidewater itself does not automatically cancel or modify the purchase contract.

The seller’s rights depend on:

Contract terms
Financing addendum
Appraisal provisions
Amendment deadlines
Closing date
Default provisions
Applicable law

The parties should not treat a Tidewater notice as a completed appraisal result.

The final reasonable value is not established until the appraisal and Notice of Value are completed.

Does Tidewater Apply to Repairs?

Tidewater is primarily a valuation process.

The appraiser may still identify property concerns involving:

Safety
Sanitation
Structural soundness
Deferred maintenance
VA Minimum Property Requirements

Those issues appear in the completed appraisal or Notice of Value.

Submitting comparable sales does not remove a legitimate repair condition.

Can Repairs Affect the Value?

Yes.

Property condition can affect:

Comparable selection
Adjustments
Marketability
Effective age
Buyer demand
Final value

A home that needs substantial work may not receive the same valuation treatment as a renovated comparable.

If repairs will be completed before closing, the appraisal may be made subject to completion when appropriate.

The contract and supporting documentation should clearly identify agreed repairs.

What Can Go Wrong?

No One Monitors the Designated Contact

The Tidewater email is overlooked.

Realtors Respond Too Late

The appraiser completes the report using existing information.

Too Many Weak Comparables Are Submitted

Strong evidence becomes buried.

Active Listings Are Presented as Sales

The package does not demonstrate actual market value.

Comparables Cross a Meaningful Market Boundary

The properties do not compete with the subject.

Seller Concessions Are Ignored

Reported sales prices are not analyzed on a cash-equivalent basis.

Square Footage Is Unsupported

The submission relies on an old listing instead of reliable measurements or records.

Improvement Costs Are Treated as Market Value

The package assumes dollar-for-dollar value.

Multiple People Contact the Appraiser

The process creates confusion and possible independence concerns.

The Parties Assume Tidewater Guarantees an Increase

The final value remains below the contract price.

The Buyer’s Contract Deadline Expires

The parties focus on valuation but fail to protect contractual rights.

How to Build a Strong Tidewater Response

Confirm the Deadline Immediately

Record the exact submission time and method.

Identify the Best Closed Sales

Prioritize similarity, proximity, recency, and verification.

Verify Every Fact

Check sales price, concessions, size, condition, and closing date.

Explain Why Each Sale Matters

Do not merely attach MLS sheets.

Document Subject Improvements

Include permits, invoices, photographs, and completion dates when relevant.

Correct Public-Record Errors

Provide reliable supporting evidence.

Remove Weak Material

Do not dilute the response with irrelevant listings or online estimates.

Use One Organized Submission

Send the package through the lender’s designated point of contact.

Keep the Tone Professional

Provide evidence without attacking or pressuring the appraiser.

Prepare for the Possible Outcomes

Discuss negotiation, additional cash, ROV, and contract rights before the final value arrives.

Recommended Tidewater Package Structure

A clear package may include:

Cover Page

Subject property
VA case number when appropriate
Purchase price
Date Tidewater was invoked
Submission deadline
Lender point of contact

Short Market Summary

Property type
Neighborhood
Relevant market boundaries
Recent market conditions
Important subject features

Comparable Summary

For each proposed comparable:

Address
Sales price
Closing date
Distance
Gross living area
Site size
Year built
Condition
Major similarities
Material differences
Reason for inclusion

Supporting Documents

Complete MLS sheets
Property photographs
Public records
Improvement documentation
Permit information
Verification of off-market sales
Relevant market data

The package should be concise enough for rapid review.

Questions Worth Asking

When Tidewater is invoked, ask:

When was the notification received?
What is the exact response deadline?
Who is the lender’s designated contact?
Where should information be submitted?
Has the buyer’s Realtor been notified?
Has the listing agent been notified?
What are the strongest closed sales?
Were there recent off-market sales?
Are public records accurate?
Is the subject square footage correct?
Are renovations documented?
Were seller concessions considered?
Are the proposed comps in the same market?
Has the package been reviewed for accuracy?
Was the submission delivered on time?
When is the appraisal expected?
When will the Notice of Value be issued?
What options will the veteran consider if value remains low?
Does the contract contain the VA Escape Clause?
Is an ROV likely to have credible support?

Common Misconceptions

“Tidewater Means the Appraisal Came in Low”

The appraisal has not yet been finalized.

“The Appraiser Must Tell Us the Preliminary Value”

The appraiser generally does not disclose the developing value during Tidewater.

“The Purchase Price Must Be Accepted Because a Buyer Agreed to It”

The appraiser must independently establish reasonable value.

“Every Comparable We Submit Must Be Used”

The appraiser determines whether the sales are reliable and relevant.

“Online Estimates Prove the Appraiser Is Wrong”

Automated estimates do not replace verified market evidence.

“The Cost of Improvements Equals the Value Added”

Market contribution may differ substantially from project cost.

“Submitting More Comparables Is Better”

A small number of strong sales is often more effective.

“Tidewater Is the Same as an ROV”

Tidewater occurs before final value; an ROV challenges the value afterward.

“The Lender Can Order Another Appraisal”

A disappointing result does not authorize appraisal shopping.

“The Veteran Must Cancel if the Value Is Low”

The veteran may negotiate, pay the difference, request an ROV, or exercise applicable contract rights.

Real Lender Perspective

Tidewater works best when the lender and Realtors treat it as a short, evidence-driven process.

The response should not begin with:

We need the property to appraise at the purchase price.

It should show:

Which closed sales the appraiser should consider
Why those properties compete with the subject
What factual information may be missing
How the subject’s condition and improvements compare
Whether neighborhood boundaries affect value
Whether concessions influenced reported sales

The most effective process is:

Confirm the deadline
Assemble the best three or four pieces of market evidence
Verify every material fact
Explain relevance clearly
Submit one organized package
Allow the appraiser to complete the report
Review the final appraisal and Notice of Value
Decide whether negotiation or ROV is justified

A disciplined Tidewater response can help the appraiser reach the most accurate result.

It cannot manufacture market support that does not exist.

Who This Guide Is For

This guide may be especially helpful for:

Veterans purchasing a home
Active-duty service members
Surviving spouses
First-time VA buyers
Realtors representing VA buyers
Listing agents accepting VA financing
Sellers
Loan officers
Mortgage processors
Builders
Rural-property buyers
Manufactured-home buyers
Condominium buyers
Veterans facing a potential low appraisal
Borrowers considering a VA ROV

Final Thoughts

The VA Tidewater process is an early opportunity to address a potential appraisal shortfall before the final value is established.

The process allows the lender’s designated point of contact to provide:

Strong comparable sales
Correct property data
Renovation information
Market-boundary analysis
Verified off-market sales
Other credible valuation evidence

The response period is short.

The package should be:

Timely
Focused
Accurate
Well supported
Professionally presented

Tidewater does not guarantee that the purchase price will be supported.

If the final VA reasonable value remains below the price, the veteran may still have options involving negotiation, additional cash, reconsideration of value, or the VA Escape Clause.

The strongest result comes from providing the appraiser with a small amount of high-quality evidence—not a large amount of information that does not reflect the subject’s actual market.