A Tidewater Notice is a 48 hour notice period from the appraiser indicating the appraiser is having difficulties with appraising the home for purchase price. Basically it means the appraiser isn’t reaching the contract price on value and the appraised value is falling short. Tidewater is the VA’s process for allowing an appraiser to notify the lender and Realtor that they are falling short and ask for assistance in finding comparable sales. The Realtors are given 48 hours to provide comparable sales to help the appraiser get up to the value as stated in the purchase agreement. We look at public records for non-MLS sales and look at all the MLS sales to put together 2-3 strong comparable sale. We include some comments based on the home and our market knowledge and submit it to the lender and appraiser. Generally within a few days we receive the appraisal and hopefully it comes in at or above contract price. VA financing is literally the only loan where this is possible, other types of mortgages do not allow for the appraisal to reach out and ask for assistance.
Reasons an appraiser may invoke the Tidewater Notice can include the home is very unique so finding comparable sales is difficult, the home sold for top dollar and the Veteran is hoping to add their closing costs into the purchase price or even just a lack of recent sales. The hardest home I have successfully worked thru a Tidewater Notice on was a Berm Home with 120 Acres. Myself and the appraiser worked together and were able to find the comparables needed to get the job done.
We work hard so that in the end the Veteran will be able to purchase their home, the seller will get their sale and proceeds to their next purchase and everyone has a happy ending!