Page 16 - The Panozzo Team - VA Home Loan Guide

THE VA APPRAISAL PROCESS

- The VA appraisal process is no different than a Conventional appraisal. The VA
appraiser is only there to determine the value of the home. If there are items of
disrepair that the appraiser might call out, it will be things you as the Realtor will

notice and will most likely be caught in the home inspection process.
- This process has been continually improved over the last decade. Appraisers are

looking for the “3 S’s.” Is the home safe, sound, and sanitary. The appraiser is not
going out of their way to find items that need to be repaired.

TIDEWATER NOTICE

- If the VA appraiser thinks the home is not going to meet the agreed upon contract
purchase price, they will initiate what’s called “Tidewater.” The Appraiser then
notifies the lender that the appraisal may come in short and will ask for comps
to support the list price. The lender then gets with the Realtors on both sides of
the transactions and collects the comps to support the value. The appraiser will
then review the comps and then return the appraisal report back to the lender.

*NOTE – Just because the appraiser initiates tidewater, it doesn’t mean the appraised
value will come in low. Many times, the appraiser calls tidewater and after reviewing
the provided comps will agree on the purchase price and return the report at or above
value.

**NOTE – If the appraisal comes in low, the Veteran can still pay over the appraised
value in cash at closing to make up the difference.

- This is where VA differentiates itself from conventional. if the appraised value
comes in lower than the agreed upon purchase price and the lender and Realtors
agree that the appraiser might have made a mistake they can supersede the
appraiser and initiate the reconsideration of value process.

**NOTE – In FY 2022, VA appraisals came in at or above value 92% of the time

compared to only 80% of Conventional loans!!

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