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Arizona VA – TIdewater Initiative

Low VA Appraised Value Tidewater Initiative – How Appraisers Handle invalue Arizona

Low VA Appraised Value – Buyers Warned Ahead of Time

If a Phoenix area VA appraiser determines that a home’s value is going to come in below the price it is being sold for they are required to notify the Phoenix area VA mortgage lender that is providing financing (a VA home loan) for the veteran buyer.  The requirement to notify that the value is coming in low is based on something called the “Tidewater Initiative” that was established in 2003.  Click HERE to read more information directly from VA’s rule book (see page 25).

Based on the Tidewater Initiative, a VA appraiser is required to give notice that the value for the property being financed is coming in lower than the home’s sales price.  A designated point of contact is notifed by the VA appraiser that the value is going to come in low.  That point of contact then has 48 hours to provide data that supports the home’s sales price.  The point of contact (typically the buyer’s loan officer) communicates with both the buyer’s agent and the seller’s agent to collect additional data in an effort to help the  Arizona VA appraiser with their valuation of the subject property.

Why do Arizona VA Appraisers Give Lender a Heads Up (48 hrs)

The 48 hour advance notice of insufficient value is designed to give the lender and both the seller’s and buyer’s Real Estate Agents time to provide data that supports the sales price of the subject property.  Typically, the seller’s and/or the buyer’s Real Estate Agent will send the appraiser recent home sales data and/or information about the subject home’s upgrades/features in order to help support a value that is in line with the home’s sales price.

What Happens After Providing Data to The Arizona Appraiser

The VA appraiser reviews all of the additional data that is sent over after their 48 hour notice of low value.  After considering the new data, the appraiser completes the VA appraisal and then delivers it to the lender that is providing financing for the VA buyer.

There is no guarantee that any of the new information that the agents provide will impact the appraisers valuation of the subject property.  Ultimately, the appraiser has final say when it comes to evaluating a homes market value.

Click HERE to visit the VA section of Jeremy House’s blog for more VA info

Click HERE to visit VA’s home site for more information on VA Home Loans

by Jeremy House



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