Did you just hear the word “Tidewater” and feel your heart sink? If you are using a VA loan in Colorado Springs, that notice can raise big questions about value, repairs, and timing. You want a clear path forward that protects your closing and keeps stress low. In this guide, you will learn what Tidewater means, why it happens here in El Paso County, and exactly how to respond with the right documents and steps. Let’s dive in.
VA appraisal basics
A VA appraisal does two things. It estimates market value and confirms the home meets the VA Minimum Property Requirements, often called MPRs. A VA‑approved appraiser completes the report after your lender orders it.
Your lender issues a Notice of Value, also called an NOV. This document states the appraised value and lists any MPR items that must be fixed. If you have strong data that supports a different value or shows the appraiser missed something important, your lender may ask for a Reconsideration of Value, known as an ROV.
What “Tidewater” means
“Tidewater” is a common term in VA lending when the appraisal raises serious concerns. It often signals one or both issues:
- The appraised value may be lower than the contract price.
- The appraiser found MPR or health and safety items that need attention.
When this happens, the lender and VA expect quick action. Typical outcomes include required repairs, additional inspections or permits, a possible price renegotiation, an ROV request, or buyer funds to cover a value gap. If no solution works, the contract may end per the appraisal contingency.
Why Tidewater happens in Colorado Springs
Colorado Springs is a strong VA market with frequent military relocations tied to Fort Carson, Peterson Space Force Base, and Schriever SFB. That steady demand is a plus, but local property traits can complicate appraisals:
- Elevation and views can create price differences block by block.
- Basements are common. Moisture or condition issues often draw extra attention.
- Our climate can stress roofs, exterior paint, and HVAC systems.
- Radon and soil questions sometimes come up. Documentation for mitigation systems and permits can help.
- HOA or PUD rules and dues can affect marketability and underwriting.
- In neighborhoods with few recent sales, appraisers may reach farther for comps. That raises the chance of a price gap when the market is moving.
The first 48–72 hours: your action plan
Speed and clarity help most. Once you hear Tidewater or see an NOV with issues:
- Contact your lender right away to confirm the findings and deadlines.
- Separate the issues. Is it a value gap, MPR items, or both?
- For repairs, get contractor bids on letterhead with scope, license number, and time to complete. Ask if permits or inspections are required.
- If value looks low, ask your lender about the ROV process and the exact documents they need.
- Deliver a clean, organized packet as fast as possible.
Build a strong ROV and repair packet
Use clear, evidence-based documentation. Include:
- Recent comparable closed sales that best support the contract price, with addresses, dates, prices, and notes on differences.
- Clear, dated photos of the home’s features and condition.
- Contractor estimates, signed contracts, deposit receipts, and timelines for any repairs.
- Permits, invoices, warranties, and final inspection sign-offs for completed work.
- Details on unique improvements or features the appraiser may have missed.
Local tips that help in Colorado Springs:
- Favor comps in the same elevation or plateau when possible.
- Note proximity to military installations when it shapes buyer demand.
- Match lot size, view premiums, and basement finish level closely.
Repair paths and closing options
If MPR issues are the main concern, you usually solve them before closing. Common paths include:
- Seller completes required repairs before close and provides proof.
- If timing is tight, ask the lender whether an escrow holdback is possible. Availability varies by lender and risk level.
- Price changes. You can renegotiate to the appraised value or split the difference.
- Buyer funds the gap. If allowed by the lender, the veteran may bring extra cash.
- If none of these work, the appraisal contingency may allow termination with earnest money returned. Contract terms control the outcome.
Seller prep to avoid Tidewater
You can minimize surprises with a few smart moves before going live:
- Get a pre-listing inspection focused on MPR items like roof condition, HVAC, electrical hazards, and structural concerns. Fix issues or line up bids first.
- Create a property packet for the appraiser. Include permits, contractor invoices, warranties, a list of upgrades with dates, and recent relevant sales.
- Price to recent closed comps, not just active listings. This reduces appraisal gaps.
- Work with a VA-savvy lender early.
- Use Compass Concierge to prepare the home for market with professional presentation and strategic improvements.
Contract and negotiation tips for VA offers
- Write a clear appraisal contingency that outlines what happens if value comes in low and sets response timelines.
- Consider a documented appraisal gap solution if the buyer is willing and able.
- Align deadlines with expected appraisal and repair windows so you have room to respond.
Communication playbook during Tidewater
- Assign one point of contact for the lender and all documents.
- Move quickly. Aim to assemble bids and comps within two to three days when possible.
- Send a professional packet to the lender for an ROV request. Keep your message concise and focused on data.
- Avoid pitfalls like unlicensed contractors, missing permits, or verbal-only agreements.
Common MPR items in El Paso County
While every property is unique, local homes often see attention on:
- Roof life and condition after seasonal storms.
- Basement moisture or drainage concerns.
- HVAC performance and safety.
- Electrical hazards or obvious safety issues.
- Documentation for radon mitigation systems and any required permits.
Setting expectations in a changing market
In some El Paso County neighborhoods, recent closed comps may be limited or differ from your home. When markets move quickly, appraisals may not match list prices. Prepare for that risk with solid pricing, a complete property packet, and a plan for repairs or value gaps. The right documentation and fast coordination often keep your closing on track.
If you want a clear plan tailored to your home and timeline, reach out. As a lifelong local advisor with deep experience guiding military and defense families, I can help you prepare, price, and respond with confidence. Connect with Robin Chambon for a tailored strategy that fits your goals.
FAQs
What does Tidewater mean on a VA appraisal in Colorado Springs?
- It is a common term for an escalated appraisal review when value appears below contract and or MPR issues exist, prompting quick documentation or repairs.
How fast do I need to respond to Tidewater or MPR issues?
- Timelines vary by lender and VA reviewer, so act immediately. Quick, complete documentation and repair plans improve your chances of a smooth resolution.
Can I still use a VA loan if the value is below the contract price?
- Yes. Options include price renegotiation, buyer funds to cover a gap, seller concessions where allowed, or an ROV with stronger comps. If unresolved, the contract may end per contingencies.
Who typically pays for VA MPR repairs in El Paso County?
- Sellers often complete required repairs before closing, but you can negotiate. Small items may be resolved easily with the right contractor and paperwork.
Can I get a second VA appraisal if I disagree with the value?
- Usually the lender first requests a Reconsideration of Value using better comps or missing facts. Ordering a second appraisal depends on lender and VA policy.
Do VA appraisers use MLS data the same way local appraisers do?
- Yes. They rely on MLS and public records for closed comparable sales. In thin markets, they may broaden the search area or time range, which can increase variance.
