A sweet name for a not so tasteful situation in real estate... VA tidewater is when the appraisal comes in lower than the agreed purchase price. Therefore, the buyer and seller will need to come to a new agreement. This could mean lowering the purchase price to the appraised amount or possibly falling out of contract.
The difference between when this happens with another loan type (conventional, FHA, etc.) is these loans DO NOT get a dope name like the VA tidewater does. Kidding!
The main difference is the timing for when a buyer or sellers agent has the opportunity to show comps for similar properties in the area. VA tidewater will be given the opportunity before the appraisal is closed. All other loan types will typically be given the opportunity to challenge the appraisal comps after it is closed. This delays when a renegotiated agreement can be decided during the transaction period.
This is common in cases where the property itself is a bit odd in location, floorplan, or if is being sold as an individual unit in an area where this does not happen often.
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