What verbiage do you use when invoking Tidewater?

[Oh No Not Him]

Yes, its that time again kiddies! Time to invoke the "Tidewater Initiative"...woo-frigging-hoo!

I was wondering what verbiage you use when informing the POC that the appraisal will be under the sales price?

I usually just say "VA has a policy & here are your options". I usually attach the small blurb from VA handbook about Tidewater, but Im working at home tonite & dont have a copy of it.

Just curious how others word it, I always seem to catch a load of crap no matter how professionally I do it.

 

[Hondo]

Check this thread, may have the info you need;

http://appraisersforum.com/showthread.php?t=198395

 

[Mike Garrett RAA]

The appraised value wasn't too low...the contract price was too high!

Seriously...I just say.."I am invoking Tidewater and you have two business days to submit any data you would like me to consider".

 

[CindyR]

These are the instructions in my handbook.

"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."

This is what I say, in an email, to the POC only:
" My guidelines indicate I am to notify you that the comparable sales data does not adequately support the contract price for this property. Please advise if you have additional sales data to support the sale price. "

 

[Blueprint]

These are the instructions in my handbook.

"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."

This is what I say, in an email, to the POC only:

" My guidelines indicate I am to notify you that the comparable sales data does not adequately support the contract price for this property. Please advise if you have additional sales data to support the sale price. "

Cindy is right on with her wording.

 

[Laurie Collins]

I've used your method, Cindy's and Mike's. The results are always the same. I could hand them the keys to a new Mercedes with the bulletin attached and it would still be the same result. Nice that you're trying to evaluate better ways of delivery though.

 

[Don Clark]

I do it by letter(Pdf) and keep a copy in my workfile:

"Please be advised that the subject property will likely not meet the contract price.
In accordance with VA Letters 26-04-7, 26-04-6, and 26-03-19, you are hereby notified and requested to provide any additional information you wish the appraiser to consider in the appraisal of the subject property within 48 hours. The notice also will not be counted against the 10 business day time frame the appraiser has to complete the assignment.
Appraiser has used 4 sales that are similar to subject in size, location, and amenities from subject neighborhood and Market Area. There were 18 Arms Length Sales in subject immediate neighborhood. Those sales were the most similar in all respects to subject and were in the highest range of value for the type and size of subject. Appraiser has searched for additional comparables but none are available. Appraiser has used 1 sale over 1 year old due to it’s similarity to subject, that closed in 09/2013. This has caused a delay in the completion of the assignment.
In accordance with the noted letters, The Tidewater Imitative, you have 48 hours to supply this additional information to the appraiser to be considered.
I look forward to your response. Also, please note, the appraiser cannot discuss value with anyone except the SAR/Underwriter."

Obviously you will need to change some verbage to accomodate your own situation.

 

[Eli]

I do it by letter(Pdf) and keep a copy in my workfile:

"Please be advised that the subject property will likely not meet the contract price.
In accordance with VA Letters 26-04-7, 26-04-6, and 26-03-19, you are hereby notified and requested to provide any additional information you wish the appraiser to consider in the appraisal of the subject property within 48 hours. The notice also will not be counted against the 10 business day time frame the appraiser has to complete the assignment.
Appraiser has used 4 sales that are similar to subject in size, location, and amenities from subject neighborhood and Market Area. There were 18 Arms Length Sales in subject immediate neighborhood. Those sales were the most similar in all respects to subject and were in the highest range of value for the type and size of subject. Appraiser has searched for additional comparables but none are available. Appraiser has used 1 sale over 1 year old due to it’s similarity to subject, that closed in 09/2013. This has caused a delay in the completion of the assignment.
In accordance with the noted letters, The Tidewater Imitative, you have 48 hours to supply this additional information to the appraiser to be considered.
I look forward to your response. Also, please note, the appraiser cannot discuss value with anyone except the SAR/Underwriter."

Obviously you will need to change some verbage to accomodate your own situation.

I usually don't state that much, but I most times try to call the POC and let them know ahead of emailing the notice. And I have usually already asked the RE agents (if there are any) for indicators of value before sending the notice. Also, I want to know the buyers and sellers motivations before sending the notice. I like the idea of requesting analysis along with any supporting data, although I never get the accompanying analysis that I request. I have to wind up getting it over the phone with the agents, or have already gotten it before the notice.

 

[Don Clark]

I usually don't state that much, but I most times try to call the POC and let them know ahead of emailing the notice. And I have usually already asked the RE agents (if there are any) for indicators of value before sending the notice. Also, I want to know the buyers and sellers motivations before sending the notice. I like the idea of requesting analysis along with any supporting data, although I never get the accompanying analysis that I request. I have to wind up getting it over the phone with the agents, or have already gotten it before the notice.

You likely don't get what you are asking for since they have no clue. As to buyers and sellers motivation???? I assume one wants to sell and the other wants to buy, but I could be wrong.

Not trying to be a smart *** but agents want one thing, their commissions, on as high a sales price as possible. Also, if there are specific motivation, agents usually put those in a listing of the property, but, again, I could be wrong.

I guess I don't deal a lot in feelings, just facts.

 

[Eli]

Motivations will tell one a lot. In a tidewater situation, I want to make sure I haven't missed something on H&B use. Never know? It is not something I usually have to ask. It just comes out like on automatic. When verifying and analyzing the market, that is a different story. One of my favorite questions is "was there anything unusual about this sale or listing, because it seems a little above (or below) market?" I try not to reveal my opinion of whether I think a comparable sale or listing is above or below market until I get their opinion. So my first question to a selling or listing agent might be just "is there anything unusual about the comparable sale or listing that would make it be above or below market ?" Or just "is there anything unusual about the sale or listing?". Depending on their answer, I may never reveal my opinion about the comp and the market, and just say "Thank you for the information. I really appreciate it".