Understanding VA Appraisals, Tidewater Notices, and Reconsideration of Value

If you’re buying or selling a home using a VA loan, the appraisal process can feel a little more detailed than with conventional financing. That’s because the VA wants to make sure veterans are paying a fair price for their home, and lenders are making safe loans.

One part of the VA appraisal process that often surprises sellers and buyers is the Tidewater Notice. Here’s what it means—and what you can do if the appraised value comes in lower than expected.

What Is a VA Appraisal?

A VA appraisal is a professional, independent estimate of a home’s value. The VA requires this step on every loan to confirm that:

• The home is worth at least the purchase price.

• The property meets the VA’s Minimum Property Requirements (basic safety, sanitation, and structural standards).

The appraiser looks at comparable sales (“comps”), market trends, and the home’s condition before submitting a report.

What Is a Tidewater Notice?

If the VA appraiser believes the value may come in below the contract price, they issue what’s called a Tidewater Notice.

Here’s how it works:

1. The appraiser notifies the lender that they’re invoking Tidewater.

2. The lender then contacts the real estate agents (or parties involved) to request additional comps or information that may support the contract price.

3. You usually have 48 hours to provide that information.

👉 In short: Tidewater is your chance to give the appraiser more data before they finalize the report.

What If the Value Still Comes In Low?

If the appraisal is finalized at a value lower than the contract price, don’t panic—there are options.

1. Reconsideration of Value (ROV)

The VA allows for a Reconsideration of Value, which is essentially a formal appeal. Your lender can submit additional evidence (better comps, overlooked upgrades, or unique property features) to the VA Regional Loan Center.

• The VA reviewer—not the original appraiser—will decide whether to adjust the value.

• While not always successful, a strong case with solid data can make a difference.

2. Renegotiating the Purchase Price

Sometimes, the seller agrees to lower the price to match the appraised value so the deal can move forward.

3. Buyer Covers the Gap

In some cases, the buyer may choose to bring in extra funds to cover the difference. With VA loans, this has to be the buyer’s own money—not financed through the loan.

4. Walking Away

If no solution works, VA buyers usually have an appraisal contingency, meaning they can walk away without losing their earnest money.

Tips for Sellers and Buyers

• For Sellers: Be prepared for Tidewater by working with your agent to have strong comps ready to go. Highlight recent upgrades or unique features that add value.

• For Buyers: Know that the VA appraisal process is designed to protect you. If the value comes in low, it may save you from overpaying.

• For Both: Stay calm—low appraisals happen, but with Tidewater and ROV, you have tools to address them.

✅ Bottom line: The VA appraisal process has extra safeguards like Tidewater Notices and Reconsideration of Value to ensure fair pricing. While it can feel stressful in the moment, these steps are meant to protect veterans, sellers, and lenders alike.