The VA Tidewater process is an early warning built into VA appraisals. When the appraiser sees that a home’s value may come in below the contract price, they tell the lender’s point of contact before the report is final. You then get a short window, two business days, to send market data that supports the price. It does not guarantee a higher value, but it is your best chance to fix a problem before it becomes a low appraisal on record.
This guide covers what triggers Tidewater, who does what, how to build a strong response, and what to do if the number still falls short.
TL;DR
- Tidewater is a notice from the VA appraiser, sent before the final report, that the home may not appraise at the contract price.
- You and your agent have 2 business days to submit comparable sales and other evidence. Missing the window means the appraiser finalizes without your input.
- The appraiser cannot discuss the expected value and is not required to raise it. The result depends on the quality of your evidence.
- If the value stays low, you can request a Reconsideration of Value, renegotiate, pay the difference in cash, or walk away under the VA escape clause.
- Getting your comparable sales ready at the offer stage is the single best preparation.
Table of Contents
- What the Tidewater process is
- How the Tidewater process works, step by step
- What to send during the 2-day window
- What if the appraiser does not change the value?
- How to prepare before you ever get a Tidewater notice
- Our perspective: why we treat Tidewater as a team exercise
- Who Tidewater helps, and who should plan around it
- Common mistakes that cost buyers the window
- Work with a broker who plans for the appraisal
- FAQ
- Sources
What the Tidewater process is
Every VA purchase loan requires an appraisal. The VA appraiser determines the property’s reasonable value and the VA issues a Notice of Value. If that value is lower than the price you agreed with the seller, the deal gets complicated quickly.
The Tidewater process, also called the Tidewater Initiative, adds a step before that happens. Under VA Circular 26-17-18, an appraiser who expects the value to fall below the contract price notifies the designated point of contact (POC) before submitting the final appraisal. The POC, usually the lender or its representative, can then pass along additional market data for the appraiser to consider.
Think of it as a chance to be heard, not a verdict. A Tidewater notice does not mean the deal has failed. It means the appraiser has not yet found enough support for the price, and you may be able to supply it.
Why it is called Tidewater
The name comes from a place. The VA launched the process in 2003 as a test in the Tidewater region of Virginia, covering Chesapeake, Norfolk, Portsmouth and Virginia Beach, to make appraisals more transparent and fair. It was later expanded nationwide, and the VA reaffirmed it in 2017 through the circular above to keep communication between appraisers and transaction parties consistent.
So while you may see “Tidewater” tied to Virginia in search results, the process applies to VA purchase appraisals across the country.
What it is meant to do
The goal is to settle valuation disagreements early. The alternative, a formal Reconsideration of Value (ROV) after the report is issued, is slower and more formal. Resolving the question while the appraiser is still working saves time and helps keep the closing date intact.
The VA has been encouraging this kind of data sharing for years. An earlier VA circular on providing market data to appraisers asks program participants to give appraisers relevant market information during the appraisal process.
How the Tidewater process works, step by step
The sequence is short, which is why the timing matters so much.
- The appraiser inspects the home and researches comparable sales. This is the normal VA appraisal.
- The appraiser sees that the value may fall short. If the estimated market value appears likely to come in below the contract price, the appraiser invokes Tidewater.
- The appraiser notifies the POC. The notice says the contract price is not supported by the data the appraiser currently has. It does not state the expected value.
- The 2-business-day window opens. The POC, your agent or you through them can submit additional information.
- The appraiser reviews what arrives. They must consider the data and then decide whether it justifies a change.
- The final report is submitted. If the value did not change, the appraiser documents what was provided and why it did not change their opinion.
One detail surprises many buyers: the appraiser is prohibited from discussing the anticipated value during this step. Their role is to signal that the price is not supported and invite more information. That keeps the appraiser impartial and focused on market evidence instead of negotiation.
How often does this come up?
Most VA purchase appraisals do not need it. The research we reviewed cites VA data showing that in fiscal year 2023, 90% of initial VA purchase appraisals met or exceeded the contract sales price, as reflected in VA guidance. That still leaves a meaningful minority, and if you are in it, the two-day clock is the part that catches people off guard.
What to send during the 2-day window
This is where the process is won or lost. An appraiser who already believes the value is low will not be moved by a vague list of listings. They need evidence they can use.
Comparable sales that fit the appraiser’s format
Appraisers work in the grid of the Uniform Residential Appraisal Report (URAR). Data presented in a similar structure is easier to apply. For each comparable sale, provide:
- Address and sale date
- Sale price
- Living area, lot size, bedroom and bathroom count
- Age, condition and quality of construction
- Features that affect value, such as a garage, pool or finished basement
Recent, nearby, similar homes carry the most weight. A sale across town from a different era of construction takes the appraiser further from your argument, not closer.
Explain why each comp is similar
Quality beats quantity. A handful of well-chosen sales with a short narrative explaining the match is stronger than a dozen addresses. Add photos where they help, and describe recent upgrades the appraiser may not have been able to see or document, such as a new roof, remodeled kitchen or updated systems. Keep receipts or permits handy.
Pending sales need paperwork
If you include a pending sale, it should come with the complete, signed sales contract. Without it, the appraiser has little reason to rely on it.
Keep it factual
Tidewater is not the place for emotional appeals, the seller’s asking history or what the buyer is willing to pay. Appraisers estimate market value from comparable evidence, so the data that matters is what similar homes actually sold for. Our own advice to buyers is simple: give your agent a clear request, and make sure the data goes through the lender’s POC quickly. An experienced local agent often already knows which comparable sales best support a price.
What if the appraiser does not change the value?
Tidewater is useful, but it does not promise a result. The appraiser is required to review what you send, yet keeps professional discretion over whether it justifies an increase. If they stay where they were, they must note what was submitted and why it did not change their opinion.
If the appraisal still comes in under the contract price, the VA Home Loan Buyer’s Guide lays out the main choices.
| Option | What it means | Best when |
|---|---|---|
| Request a Reconsideration of Value (ROV) | A formal request, after the report, that the value be reviewed, supported by market data | You have strong new comparable sales that were not previously considered |
| Renegotiate the price | Ask the seller to lower the price to the appraised value | The market data does not support the original price and you want the home at a fair number |
| Pay the difference in cash | You cover the gap between appraised value and contract price at closing | You have the funds and still want the home at the agreed price |
| Walk away | Cancel the contract using the VA escape clause | The numbers do not work and you would rather not proceed |
Note that the ROV route is slower and more formal than Tidewater. That is a reason to take the two-day window seriously rather than treating the ROV as a backup you can casually fall back on. If you miss Tidewater, the final report goes out with the lower value on it, and the ROV then starts from that record.
The VA escape clause
Your strongest protection is the VA escape clause, a required paragraph in VA purchase contracts. According to the buyer’s guide, it lets you cancel without losing your earnest money if the property does not appraise at no less than the contract price, provided you have not already agreed to proceed regardless of the value. Ask your agent to confirm the language is in your initial offer, before anything is signed.
How to prepare before you ever get a Tidewater notice
Because the window is so short, the buyers who do best are the ones who prepared before it opened.
- Build a comp file when you write the offer. Ask your agent to pull recent sales of similar homes nearby and keep them in a folder. If Tidewater is triggered, you are editing, not starting from zero.
- Document the home’s upgrades. Keep a list with dates, costs and photos of significant improvements.
- Confirm who the POC is. Ask your loan officer who will receive the appraiser’s call, and make sure that person will check messages promptly. Do not leave this to chance when the deadline is two business days.
- Agree on response times. Make sure you, your agent and your lender can all turn around documents within a day.
- Know your fallback. Decide ahead of time whether you would pay cash for a gap, push for a price reduction, or exit.
If you want a plain overview of how VA appraisals fit into the full loan, our VA loans page walks through the program from eligibility to closing.
Our perspective: why we treat Tidewater as a team exercise
We see Tidewater as the moment when good communication matters most. The rule is simple, but the execution depends on speed, and speed depends on everyone in the transaction knowing what to do.
Our approach as a mortgage brokerage is built around streamlined communication and an entirely online application, with many loans funding in under 21 days. That kind of pace only works when there are no surprises, so we encourage VA buyers to talk about the appraisal before they make an offer: who will receive the appraiser’s notice, what data will be ready, and what the plan is if the value is short.
We also tell buyers plainly that Tidewater is a tool, not a promise. A good comp package helps the appraiser see what the market is doing, and it still comes down to their judgment. The best protection is a contract with the right contingencies, a realistic offer price based on local sales, and a lender that answers the phone.
If you are a veteran or service member who has found a home, a conversation with us before you write the offer costs nothing and can save days later.
— David Mordue
Who Tidewater helps, and who should plan around it
Buyers using VA purchase loans. The process applies to VA purchase appraisals, so this is where it matters most. Buyers in competitive markets, where prices can run ahead of recent sales, are more likely to see a value gap.
Buyers of unusual or recently updated homes. If a house has features that are hard to compare, such as a major remodel or a uncommon layout, the appraiser may lack good matches. Your documentation can fill that gap.
Agents and sellers. Sellers benefit when the appraisal supports the price, so many are willing to help gather comparable sales. A seller who understands the process can speed up your response.
It is worth noting that Tidewater is a feature of the purchase process, so if you are refinancing, the question is handled differently. If that is your situation, our refinance calculator helps you see whether a new loan makes sense before you start.
Common mistakes that cost buyers the window
- Waiting for the report. The notice comes before the report. Once it is final, you are into ROV territory.
- Sending a list of addresses with no context. Without explanation or details, the appraiser has nothing to weigh.
- Including pending sales without the signed contract. They may not be considered.
- Asking the appraiser what the value will be. They are not allowed to say, and pressing can slow things down.
- Assuming the notice means the deal is dead. It does not. Many buyers resolve it with good data or a negotiated adjustment.
- Not checking the escape clause. If you discover it is missing after a low appraisal, your options narrow.
Work with a broker who plans for the appraisal
A VA loan is one of the strongest benefits a veteran can use, and the appraisal is one of its few moving parts you do not control. What you do control is preparation. We help buyers compare lenders and rates, apply fully online, and line up the paperwork so the appraisal does not catch them off guard.
Ready to see where you stand? Check your VA loan options or see today’s rates and start a pre-approval.
FAQ
Does Tidewater mean my VA appraisal came in low?
No. Tidewater is a warning sent before the appraisal is finalized. It means the appraiser’s current data does not support the contract price, and you have a chance to submit more. Nothing is final until the report is issued.
How long do I have to respond to a Tidewater notice?
The process gives you two business days to submit additional market data. The clock starts when the point of contact is notified, so a quick response from your agent and lender matters. If you miss the window, the appraiser completes the report without your input.
Can the appraiser tell me how low the value is?
No. VA guidance prohibits the appraiser from discussing the anticipated value during the Tidewater step. They can only say that the contract price is not supported by the data they have and invite additional information. You learn the value when the final report is issued.
What happens if Tidewater does not raise the value?
You still have options. You can request a Reconsideration of Value with new supporting data, ask the seller to lower the price, pay the difference in cash, or cancel under the VA escape clause if your contract includes it. Your agent and loan officer can help you choose the path that fits your finances.
Does Tidewater only apply in Virginia?
No. It began as a test in the Tidewater region of Virginia in 2003, but it was expanded nationwide and now applies to VA purchase appraisals across the country.
Sources
- VA Circular 26-17-18: Procedures for Improving Communication with Fee Appraisers in Regards to the Tidewater Process
- VA Home Loan Guaranty Buyer’s Guide
- VA Circular 26-03-11: Providing market data to appraisers