What Is VA Tidewater: What Home Buyers & Sellers Must Know


If you’re working with a VA loan, you may have heard the term “Tidewater” come up during the appraisal process. For both buyers and sellers, understanding what Tidewater means and how to handle it effectively can make a significant difference in the success of a transaction. As a top Tacoma real estate agent, I know how to navigate this situation and keep a deal together.

What Is VA Tidewater?

The Tidewater Initiative is a process unique to VA appraisals that occurs when an appraiser believes the home’s value may come in “below the surface” of the agreed upon contract price. Instead of immediately issuing a low appraisal, the appraiser invokes the Tidewater process, which gives the real estate agents and parties involved a brief opportunity—typically 48 hours—to provide additional market data supporting the contract price.

While this process is designed to offer a fair chance to justify the home’s value, it can create stress for both buyers and sellers. A low appraisal can mean the buyer must renegotiate the price, bring additional funds to closing, or potentially lose the home if a resolution isn’t reached.

How Tidewater Affects Buyers and Sellers

For buyers, a Tidewater situation can be concerning because VA loans do not allow them to pay above the appraised value unless they cover the difference out of pocket. If the seller is unwilling to lower the price and additional market data doesn’t support a higher valuation, buyers may be forced to walk away.

Sellers, on the other hand, may face the difficult decision of reducing the home’s price, contesting the appraisal, or finding a new buyer who is not using a VA loan. This can delay closing and create uncertainty in the transaction.

How Real Estate Agents Can Prevent or Remedy Tidewater

Avoiding Tidewater

The best way to prevent a Tidewater situation is to ensure the home is priced accurately from the start. Here’s how agents can help:

  • Conduct a thorough CMA (Comparative Market Analysis): Ensure the listing price is based on recent, comparable sales that would hold up under an appraisal.
  • Prepare for appraisal day: Provide the appraiser with a list of relevant comparable sales before the appraisal takes place.
  • Highlight property upgrades: Make sure any recent improvements or renovations are documented and available for the appraiser.

Addressing a Tidewater Notice

If an appraiser invokes Tidewater, agents must act quickly. Here’s what to do:

  1. Gather additional comps: Find recent sales that support the contract price. This may include homes that closed very recently or sales not reflected in the MLS.
  2. Provide supporting documents: Include any evidence of unique property features or upgrades that justify the higher price.
  3. Submit the information promptly: Since the Tidewater period is short, responding quickly can make all the difference.

If the appraiser still delivers a low valuation, the buyer’s agent can request a Reconsideration of Value (ROV) through the VA. This process allows for further review of the appraisal if there are strong reasons to challenge it.

Final Thoughts

The VA Tidewater Initiative is a safeguard that ensures homes are fairly valued, but it can also pose challenges for transactions. By being proactive, real estate agents can help prevent low appraisals and effectively respond when Tidewater is invoked, keeping the deal on track and ensuring a smooth closing for both buyers and sellers.

If you’re considering moving to Tacoma or selling a home in Lakewood due to a Permanent Change of Station (PCS) order, I urge you to call me to discuss how I can assist you in the process. As a top Washington agent, I’ve helped countless VA buyers and sellers negotiate their home transaction. Call me at (206) 643-8845 or reach out to https://erikmolzen.bhhsnw.com/ 

#VAloan, #VAappraisal, #TidewaterInitiative, #VAhomebuyers, #realestateappraisal, #homebuyingtips, #vahomeloan, #appraisalissues, #realestatetips, #homebuyingprocess, #realtorlife, #realestateagents, #homevalues, #propertyvaluation, #mortgagetips, #vahome, #homeselling, #vahomeloanspecialist, #homebuyersguide, #sellingyourhome

 

Location: Lakewood, WA, USA

Comments

Post a Comment

Popular posts from this blog

Your Washington State 2025 Market Forecast

Image
As we move through 2025, Washington state's real estate market shows a blend of stability and gradual growth, influenced by various economic and demographic factors. From a top Seattle agent viewpoint, here’s an in-depth look at the current trends and forecasts shaping the market. Moderate Home Price Appreciation Statewide, home prices are anticipated to experience modest increases. Analysts predict that median home prices could rise by approximately 3% to 4% annually over the next two years. This steady appreciation suggests that Washington will remain an attractive market for both homeowners and investors. In Seattle, the median home price is around $850,000 as of December 2024, with expectations of continued growth into 2025. Limited inventory and sustained demand, particularly in sought-after neighborhoods, are key drivers of this trend. Inventory Levels and Market Dynamics The state's housing inventory remains tight, contributing to a competitive market environme...
Read more

The Rise of Accessory Dwelling Units (ADUs) in the Greater Seattle Area: What Homeowners Need to Know

Image
As housing affordability challenges persist in the Seattle-Tacoma region, Accessory Dwelling Units (ADUs) have emerged as a practical solution for homeowners seeking to maximize their property's potential. These self-contained living spaces, either attached (ADUs) or detached (DADUs), offer flexibility, additional income, and contribute to the region's housing diversity.  Understanding ADUs: Definitions and Types An ADU is a secondary housing unit on a single-family residential lot. They come in two primary forms: Attached Accessory Dwelling Units (AADUs): These are integrated within the primary residence, such as basement or attic conversions.  Detached Accessory Dwelling Units (DADUs): Also known as backyard cottages, these are standalone structures separate from the main house.  Both types must include essential living facilities like a kitchen, bathroom, and sleeping area. Recent Legislative Changes Favoring ADU Development King and Pierce County and Washin...
Read more

Why Single-Story Homes Can Hold More Value Than Multi-Story

Image
In my 15+ years in real estate, I’ve guided countless buyers and sellers through the intricacies of home value—and one topic that continues to spark interest is the difference between single-story and multi-story homes. While multi-level homes can be appealing for their compact footprint and separation of space, single-story homes often retain a higher value, and it’s not just about aesthetics or lifestyle. The construction differences, building costs, and land use all play a role in why single-story properties are often in higher demand and appraise for more. The Construction Factor From a builder’s perspective, a single-story home requires more foundation and roofing materials compared to a two-story home of equal square footage. This is because the footprint is spread horizontally rather than vertically. You’ll need a larger slab, more trusses, and often more framing material. That said, while this may make construction slightly more expensive on a per-square-foot basis, it also r...
Read more