Tidewater Initiative Question?

[unloadit]

I am doing a VA appraisal, and this is the first one I have done where the value is coming in below the sales price. I contacted the lender and told them the value is coming in below sales price. They told me that they are going to get some "comps" from the Realtor for me to look at. I know that none of the comps are going to raise the value. I have the best comps. It is a slam dunk.

So my question is......do I add an addendum to the report saying that I notified them, they sent me comps, I reviewed the comps and didn't use any of them.......and then submit the appraisal? Or do I just tell the lender the comps aren't any better, and submit the appraisal? Or just submit the appraisal as I have it right now??

Thank you

 

[Mike Kennedy]

"Tidewater Initiative
In 2003, a major change in VA’s policy regarding interaction between VA Fee
Appraisers and other program participants was introduced. In brief summary, the
Tidewater procedure allows an opportunity for a designated “Point of Contact” to
provide market evidence for the appraiser’s consideration prior to establishing the
final URAR value. The appraiser initiates the procedure by alerting the Contact person
that the appraised value appears likely to come in under the sales price. The appraiser
should not discuss the appraisal contents except to explain that the comparables
located by the appraiser do not adequately support the sales price. The Contact person
then has two business days to provide additional sales information in support of the
sales price. Verification of the closed sales is required. (Pending sales may be offered,
but should only be used to support time adjustments.)
All attempts to communicate with the designated Point of Contact must be
documented to show the date of the attempt, the party’s name and phone
number, and whether or not additional information was provided.
(Reference: New Procedure for Improving Communication With Fee Appraisers <<<<<<<<<<<<<<<<<
and Streamlining Reconsideration of Value (Tidewater Initiative) – Circular 26-03-11)"


http://www.vba.VA.gov/ro/phoenix/RLC/PDF/Fee_Appraiser_Handbook_Oct_2011_FINAL.pdf

 

[Fritz in NY]

That about says it all. Another change is that the "tidewater" no longer is in effect for refi's. I hated battling Vets over "their" comps vs mine.

 

[unloadit]

Thank you. So would you document everything and just keep it in your workfile, or would you actually explain it in an addendum in the report as well?

 

[Lee Lansford]

Thank you. So would you document everything and just keep it in your workfile, or would you actually explain it in an addendum in the report as well?

"Explain, explain, explain..."

 

[unloadit]

Okay, so in an addendum of the report. Thank you.

 

[CCAAMO]

Put the date you notified the client that the appraised value was lower than the sales price and the date they supplied additional data to you. Then state that you reviewed the additional data supplied to you and took it into consideration. That's it.

If they opt not to supply additional data then state that.

If for some reason the data resulted in a change of value, then Lucy you got lots of explaining to do.

 

[Roy Courtney]

VA Appraisal Guidelines, Page 31. ******* "once notified, the lender or POC have 2 work days to provide additional information to the appraiser, in a format similar to the comparable sales grid on the URAR." **** (My Bold)

I do not know about anyone else but I do not want a lender to call the Realtor and have them supply a whole bunch of MLS listings (based on price) for me to read thru. In my notice to the lender I remind them of the 2-days, the fact that they should put the information in the format similar to the URAR. I also tell them that I am a member of the MLS and have already reviewed the available data from that source. Please send me something that I was unaware of. Of course they never do, they just send the listings in a whole stack. I glance at them to be sure I did not miss anything, sign and upload my appraisal to the VA portal.

 

[Don Clark]

VA Appraisal Guidelines, Page 31. ******* "once notified, the lender or POC have 2 work days to provide additional information to the appraiser, in a format similar to the comparable sales grid on the URAR." **** (My Bold)

I do not know about anyone else but I do not want a lender to call the Realtor and have them supply a whole bunch of MLS listings (based on price) for me to read thru. In my notice to the lender I remind them of the 2-days, the fact that they should put the information in the format similar to the URAR. I also tell them that I am a member of the MLS and have already reviewed the available data from that source. Please send me something that I was unaware of. Of course they never do, they just send the listings in a whole stack. I glance at them to be sure I did not miss anything, sign and upload my appraisal to the VA portal.

I always send an e-mail and "officialy" notify the lender or the designated POC of a possible value below the sales price. I also remind them that I cannot discuss value with anyone except the VA SAR.

Once I receive any feed back I look at it and then put a notice in the report as to what I have done, and when and upload to VA Web Portal. Since I was in the original test group in Tidewater I have all the appropriate letters if some lender does not know what I am talking about.

Document, disclose, document.

 

[Jill Kinnaird]

Please note that the data, if any, provided by the entity designated by the client to do so ,must also have been confirmed and verified. Wait til you get the client contact that has no concept of the Tidewater Initiative.....that's really fun to deal with....