Homes Now Colorado
Dianne Meyer

Tidewater Initiative

When a VA Appraiser feels the value may be short of the purchase price, then a Tidewater Initiative is invoked. The appraiser will then notify the Person of Contact, usually the lender or the listing agent of the property. In the case of a by owner sale, it may be the seller direct or the lender for the Buyer.

Either the Seller or the Listing Agent has two days to complete a grid form provided by the Appraiser showing three homes in comparison to the subject home and to prepare a narrative about the homes selected and why these home may justify the contract price in hopes the Appraiser can review this information to issue a Notice of Valuation the same as the sale price. In the real estate industry, it is referred to as the home appraised out or appraised to value.

If the information is not submitted, most likely the appraised value will come in lower than the sale price. The Seller will then have to lower the sale price of the home to go forward and close the home. The Buyer can pay the difference in cash or the contract simply fails and the Buyer will be entitled to a return of their earnest money.