The VA Appraisal: What It Checks and Why Sellers Worry

The VA appraisal is one of the most misunderstood parts of buying with a VA loan. It serves two purposes: estimating the home's value and checking that it meets the VA's Minimum Property Requirements (MPRs). Some sellers hesitate to accept VA offers because they worry about stricter standards, but understanding the process helps you navigate it with confidence and even reassure sellers. The appraisal is not a home inspection, so you should still get your own.

The VA's MPRs exist to make sure the home is safe, structurally sound, and sanitary. The appraiser checks that the roof keeps moisture out and has reasonable remaining life, that heating, electrical, and plumbing systems work, and that there are no obvious hazards like exposed wiring, defective paint on older homes, or missing handrails where needed. The home must have adequate access from a public or private road, and crawl spaces and basements should not have standing water or excessive moisture. These are not cosmetic standards — the VA does not care about outdated countertops or old carpet. It cares about whether the home is livable and safe. In California, sellers must also meet state rules that apply to most sales, such as strapping the water heater and having working smoke and carbon monoxide alarms, and appraisers often note these items.

Frequent MPR issues include chipping or peeling paint on homes built before 1978 (potential lead paint), roofs near the end of their life, water damage or active leaks, heating systems that do not work, and broken windows. Termite or other wood-destroying insect damage can also flag a property, and in some areas the VA requires a pest inspection. Homes with a private well or septic system may need extra testing or inspections to confirm they meet health standards. None of these issues are unique to VA loans — they are things any buyer should care about — but the VA formalizes the requirement rather than leaving it optional.

If the appraiser identifies MPR issues, the deal is not over, but the required repairs generally have to be completed, and confirmed, before the loan can close; a credit at closing does not satisfy an MPR item. The seller can make the repairs, which is the most common resolution, or the parties can agree to have a contractor do the work; ask your lender whether you are allowed to pay for repairs yourself. If the seller refuses and the issues are significant, you may be able to cancel, depending on the contingencies still open in your contract. If the appraised value comes in below the purchase price, the VA's Tidewater process lets your lender submit additional comparable sales before the value is finalized, and you can also request a reconsideration of value. If you sign the purchase contract before the VA value is issued, the contract must include the VA's escape clause, which means you do not have to complete the purchase, or lose your deposit, if the price is above the VA's appraised value. You can still renegotiate the price, or pay the difference in cash if you choose to.

Sellers wary of VA offers often base their concern on outdated experiences or secondhand stories. Have your agent explain the VA appraisal process and timeline in your market. Get an inspection early, or ask whether the seller has one, so both sides know the home's condition before the appraisal. A strong pre-approval letter from an experienced VA lender also shows you are a serious buyer. Many VA appraisals go smoothly, especially on well-maintained homes.

• ✓VA MPRs focus on safety, structural soundness, and sanitation — not cosmetic condition
• ✓Required MPR repairs generally must be completed before closing, by the seller or by agreement
• ✓A low appraisal triggers options: Tidewater, a reconsideration of value, renegotiation, or using the VA escape clause to walk away without losing your deposit
• ✓An early inspection and a strong pre-approval letter can ease seller concerns about a VA offer