Tidewater Initiative

The Tidewater Initiative
When a VA buyer’s appraisal comes in low on a home purchase is referred to as “Tidewater”. The buyer is not be able to get a loan for the current sales price if the sales price is higher than what the home appraises for. The buyer would have to either pay out of pocket the difference, ask the seller for a reduction in the sales price, or challenge the appraisal.

Tidewater Timeframe
Once Tidewater is invoked you have two days to provide additional sales comparables to support the current sales price. If you do not provide supporting comps within two days you will not be able to challenge the appraisal. If the comparables are not approved within two days or you do not respond within this time-frame you have to take an alternative course of action.

Tidewater Resolutions
1) If you are a buyer, you can ask the seller to reduce the sales price, so you can get a loan.
2) If you are the seller, you can opt to reduce the sales price, so the buyer can get a loan.
3) The buyer can pay of pocket the price difference in appraisal amount to the sales price.
4) The buyer and seller can split the difference in the appraisal amount and sales price.
5) The buyer can back out of the transaction if the seller agree to any of the above.
6) If you are the seller, you do not have to cooperate, and the buyer can opt to back out.
7) The easiest method – challenge the appraisal within two days of Tidewater being invoked.

Tidewater Success
In March 2015, I personally experienced Tidewater. This was the first time I’d ever even heard of it since receiving my real estate license in August 2003. Since I was representing the buyer we first asked the listing agent and seller for a price reduction. They refused to cooperate with any price reductions. The buyer really wanted to complete the purchase and the home was the best priced home in the entire zip code. I ran supporting sales comparisons, which in fact supported the price, we challenged the appraisal, and were successful.

Closing on Tidewater
If you are in a transactions where there is a VA buyer and the Tidewater Initiative is invoked, you need to respond as soon as possible. Remember you have two days to respond. It is your job to present the most accurate information and represent your buyer or seller to the best of your ability. Not every appraiser is going to be familiar with your market. In this event I was representing a disabled veteran who really wanted to get into the home. There was very limited inventory in an appreciating market. The buyer would not have been able to purchase a home in this zip code if we did not challenge the appraisal.

Brian Hall Properties
As a real estate professional it is your job to get in there and fight for your client. In this situation the home was 1.5 miles from the beach and appreciated over $50K in the past year. The buyer would not be a home owner in this neighborhood ever. If you need more information or appreciate the blog please feel free to email me on my contact page. If you need an outstanding real estate broker – please give me a call.

Brian Hall
Real Estate Broker
619-370-7715 Direct
California BRE #01399160
Brian Hall Properties

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Selecting the right realtor

Selecting the right realtor
When buying or selling a home it is  important you select someone who understands your requirements and is capable of helping you attain your goals. There are close to 20,000 real estate agents in San Diego County. Having the right person on your side can be the difference between working out a favorable sale or not working out a deal at all.

Realtors, agents, and brokers
Most agents and brokers are realtors. To be a realtor you must be a member of the National Association of Realtors and subscribe to the Realtor Code of Ethics. A real estate agent must be employed by a broker. A broker is essentially a real estate agent with more training, responsibilities, and a higher certification.

Selling Agent Vs. Listing Agent
A selling agent represents the buyer. A listing agent represents the seller. Most agents work as selling agents and listing agents when they are working with a buyer or seller. It is common for real estate agents business to be 50/50 in working with buyers and sellers.

Single Agency vs. Dual Agency
In a single agency an agent represents either the buyer or seller. In a dual agency an agent represents both the buyer and the seller. Most transactions are single agencies. The buyer and the seller have to consent to a dual agency.

Cost to work with a realtor
The seller pays all real estate commissions. It generally costs a seller 5%-6% to sell a home. That means 2.5%-3% goes to the selling agent and 2.5%-3% goes to the listing agent. There is zero costs for a buyer to work with a real estate agent since the seller pays the commissions for both the seller’s agent and the buyer’s agent.

Brian Hall Properties
With 10+ years in real estate, I have always found success by putting my clients needs first at all times. Please give me a call if you are looking for an expert real estate broker to ensure you have a positive and successful experience.

#buying #selling #listingagent #sellingagent #realestatebroker #realestateagent #realtor #brianhallproperties #brianhall #singleagency #dualagency #sandiegocounty #solanabeach