Navigating a VA appraisal can sometimes bring unexpected hurdles, especially if the appraisal value comes in lower than expected. If you’re a homebuyer or a real estate professional using the VA home loan program, understanding how to handle a low appraisal is crucial.
On our latest episode of The VA Home Loan Podcast, VA Home Loan Expert and National VA Home Loan Trainer Michael Fischer joins me to break down an often-overlooked process within the VA loan framework: reconsideration of value (ROV). Our discussion covers how this process, including a special step called “Tidewater,” works to help borrowers challenge and potentially increase an appraisal value that falls short.
Watch the Full Podcast Episode Below!
What Is a VA Appraisal and Why It Matters
A VA appraisal is required for every property purchased with a VA home loan. Unlike a typical home appraisal, it’s designed to protect both the borrower and the lender by ensuring the home's value matches or exceeds the agreed-upon purchase price. If the appraisal comes in under value, it can halt the deal or force buyers to renegotiate terms. This is where knowing your options becomes a game-changer.
The Tidewater Initiative: The First Step in Challenging Low Appraisals
The VA home loan program offers a unique mechanism called the "Tidewater Initiative." Under Tidewater, if an appraiser believes the value will not support the purchase price, they notify the designated person the appraiser was directed to contact for property access to submit additional market data to support a higher valuation. This step takes place before the appraisal report is finalized and provides a powerful chance to present evidence of comparable sales or justify the original contract price.
Unfortunately, many loan officers and real estate professionals are unaware of Tidewater or how to leverage it effectively. As Michael Fischer explained on our podcast, this phase offers a critical window of opportunity to influence the appraiser’s final opinion of value.
When Tidewater Isn’t Enough: Escalating to a Reconsideration of Value (ROV)
If the Tidewater Initiative doesn’t result in a favorable adjustment, there’s another path forward: requesting a reconsideration of value (ROV) from the VA. Unlike Tidewater, which happens before the final report is issued, an ROV can be initiated after the final appraisal is completed. According to Fischer, an ROV involves submitting detailed evidence and justification to the VA, who then reviews the request. This can include updated comparables, corrections to the appraiser's report, or evidence of errors.
“Many lenders and loan officers don’t realize they can take their case directly to the VA,” Fischer said. “It’s a process that can make all the difference if handled correctly.”
Why This Matters for Borrowers and Agents
Understanding these processes can save a transaction that might otherwise fall apart due to a low VA appraisal. Our podcast episode dives deeper into these steps, providing real-world examples and actionable advice for buyers, agents, and loan officers navigating challenging appraisals.
Watch the Full Episode
For a complete guide and expert advice on VA appraisal reconsiderations, watch the embedded video of my conversation with Michael Fischer. Whether you’re a homebuyer, real estate professional, or lender, you’ll come away with valuable insights that could save your deal and help you better serve those using their VA benefits.
Have Questions or Need Help?If you’d like to be connected to a VA Home Loan Expert with direct access to Michael Fischer, call or text 707-695-6313, or email info@realestatedailymagazine.com and put “VA Expert” in the subject line. Alternatively, fill out the contact form below.
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