Understanding the VA Tidewater Process and Reconsideration of Value (ROV)

For military homebuyers using a VA loan, navigating the appraisal process can be a critical step in securing their dream home. Two important concepts in this process are the Tidewater Initiative and the Reconsideration of Value (ROV). Understanding these can help buyers, sellers, and real estate agents work through potential valuation issues smoothly.

What is the VA Tidewater Initiative?

The Tidewater Initiative is a unique feature of VA appraisals that allows an opportunity to address a potentially low appraised value before the final report is submitted. This process benefits VA buyers by offering a proactive step to justify the contract price.

How the Tidewater Process Works:

1. Notification: If the VA appraiser determines that the home may not meet the agreed-upon purchase price, they will initiate the Tidewater process by notifying the lender (who then informs the real estate agent and buyer).

2. Evidence Submission: The buyer’s agent has 48 hours to provide additional comparable sales (comps) or other supporting data that justify the contract price.

3. Appraiser Review: The appraiser evaluates the submitted evidence and makes a final determination.

4. Final Appraisal Report: If the appraiser finds the additional data persuasive, they may adjust the valuation. If not, the appraised value may remain lower than the contract price.

What is a Reconsideration of Value (ROV)?

If the Tidewater process results in a lower-than-expected appraisal, the Reconsideration of Value (ROV) offers another opportunity to challenge the valuation.

How the ROV Process Works:

1. Request Submission: The borrower, through their lender, can formally request an ROV. This must include additional market data supporting a higher valuation.

2. Supporting Evidence: This can include better comparable sales, market trends, or corrections to inaccuracies in the appraisal report.

3. VA Review: The VA Regional Loan Center (RLC) reviews the request and may either adjust the value or uphold the original appraisal.

Key Takeaways for Buyers and Agents

• Act quickly during the Tidewater process since the window to submit comps is only 48 hours.

• Ensure quality comps—select recent sales in the same neighborhood with similar size, condition, and features.

• Use the ROV as a last resort if the appraisal remains low after Tidewater.

• Work with VA-savvy agents and lenders who understand these processes and can advocate effectively.

Navigating the VA appraisal process can be challenging, but knowing how to handle the Tidewater Initiative and Reconsideration of Value can improve your chances of securing fair home valuations. If you're buying or selling a home in Oahu, reach out—I specialize in helping military families with their housing needs!