TL;DR: VA appraisals determine both property value AND that it meets Minimum Property Requirements (MPRs). Cost: $400-700 (paid by buyer). Timeline: 7-14 days. If appraisal comes in low, options: negotiate lower price, pay difference in cash, request Reconsideration of Value, or walk away (VA allows with appraisal contingency). Seller CANNOT require veteran to pay for MPR repairs.

Key Statistics:

Typical VA appraisal cost: $400-700
Appraisal timeline: 7-14 days
Appraisal valid for: 6 months
Tidewater process: 2 extra business days for comps
Reconsideration of Value: Free to request

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What Makes VA Appraisals Different?

VA appraisals serve two purposes that conventional appraisals don't always address:

Value determination: What is the property worth?

Condition assessment: Does the property meet VA Minimum Property Requirements (MPRs)?

This dual purpose means VA appraisals are more thorough than conventional ones. The appraiser isn't just assigning a number – they're ensuring the home is safe, sanitary, and structurally sound.

For buyers, this is protection. For sellers, it sometimes means addressing issues before closing. Let me explain how the process works.

The VA Appraisal Process Step by Step

Step 1: Lender orders appraisal

After you're under contract, your lender requests a VA appraisal through the VA's portal. They don't choose the appraiser – the VA assigns one.

Step 2: VA assigns appraiser

The VA selects an appraiser from their fee panel. This ensures independence – the appraiser works for the VA, not your lender.

Step 3: Appraiser schedules inspection

The appraiser contacts the listing agent or seller to schedule a property inspection. This typically happens within 1-2 weeks of ordering.

Step 4: Property inspection

The appraiser visits the home, takes photos, notes condition, and evaluates comparable sales. This takes 1-2 hours on-site.

Step 5: Report preparation

The appraiser completes their report, including value conclusion and any required repairs. This takes several days.

Step 6: Notice of Value (NOV) issued

The completed appraisal is submitted to the VA and your lender. The NOV shows the appraised value and any conditions.

Step 7: Resolution of conditions (if any)

If repairs are required, they must be completed and verified before closing.

Timeline: From order to NOV typically takes 10-14 days, though it can vary by market.

What the Appraiser Evaluates

Market value:

The appraiser compares your property to recent sales of similar homes. They adjust for differences (size, features, condition) to arrive at a fair market value.

Minimum Property Requirements:

**Safety:** No hazards, working systems, secure structure
**Sanitary:** Clean water, functional sewage, proper ventilation
**Structural soundness:** Good foundation, intact roof, weathertight exterior

Specific items checked:

Roof condition and remaining life
HVAC functionality
Plumbing and electrical systems
Foundation and structural integrity
Paint condition (especially pre-1978 homes)
Pest damage or infestation
Safety hazards (railings, stairs, smoke detectors)

The Tidewater Initiative

Tidewater is a VA process that protects everyone when an appraisal might come in low.

How it works:

If the appraiser believes the property will appraise for less than the contract price, they notify the lender BEFORE issuing the final value. This gives you a chance to submit additional information.

What you can provide:

Recent comparable sales the appraiser may have missed
Information about property upgrades
Market trend data
Anything that supports the contract price

The appraiser considers this information before finalizing their value conclusion. They're not required to change their opinion, but they must consider the additional data.

Why it matters:

Tidewater prevents surprise low appraisals. You get a chance to make your case before the value is locked in.

When the Appraisal Comes in Low

Despite Tidewater, appraisals sometimes come in below contract price. Your options:

Renegotiate the price:

Ask the seller to reduce the price to the appraised value. This is common and often successful.

Pay the difference:

You can pay cash for the gap between appraised value and contract price. VA will finance up to appraised value; you cover the rest.

Split the difference:

You and seller each contribute to cover the gap. A common compromise.

Request Reconsideration of Value (ROV):

Formally challenge the appraisal with additional comparable sales or evidence. Must be submitted through your lender.

Walk away:

The VA loan escape clause protects you. If the appraisal is below contract price, you can exit without losing your earnest money (assuming standard contract terms).

The VA Escape Clause

Every VA purchase contract must include (or be amended to include) the VA escape clause:

*"It is expressly agreed that, notwithstanding any other provisions of this contract, the purchaser shall not incur any penalty by forfeiture of earnest money or otherwise be obligated to complete the purchase of the property described herein, if the contract purchase price or cost exceeds the reasonable value of the property established by the Department of Veterans Affairs."*

This protects you from being forced to overpay. If the VA says the home isn't worth the contract price, you can walk away.

The Notice of Value (NOV)

The NOV is the official VA appraisal document. It includes:

Appraised value: The appraiser's determination of market value.

Property conditions: Any repairs required before closing.

NOV stays with the property: The value is valid for 6 months. If your deal falls through and another VA buyer makes an offer within 6 months, they're subject to the same appraised value.

Multiple VA offers: This prevents sellers from shopping for higher appraisals. The NOV is the NOV.

Common Appraisal Issues

Value-related:

Limited comparable sales
Overpriced market conditions
Unique property features that are hard to value
Declining market

Condition-related:

Roof at end of life
Peeling paint on pre-1978 homes
Non-functional HVAC, plumbing, or electrical
Safety hazards
Pest damage
Foundation issues

Condition issues require repair before closing. Value issues require negotiation or decision.

Preparing the Home for Appraisal

If you're the seller (or want to advise the seller):

Ensure access: Appraiser needs to see all areas including attic, basement, and crawlspace.

Make it presentable: While appraisers focus on facts, a clean, well-maintained appearance doesn't hurt.

Provide information: Upgrades, permits, recent repairs – any documentation that supports value.

Fix obvious issues: If you know something will fail MPR (broken railings, missing smoke detectors), fix it first.

Pre-1978 homes: Address any peeling paint before appraisal.

Appraisal vs. Home Inspection

VA Appraisal:

Required by VA
Determines value and MPR compliance
Paid by buyer (typically $400-700)
Appraiser works for VA
Less detailed than inspection

Home Inspection:

Optional but strongly recommended
Comprehensive condition assessment
Paid by buyer ($350-500)
Inspector works for you
Much more detailed

Both are valuable. The appraisal is required; the inspection is your protection. Never skip the inspection.

What If Repairs Are Required?

Who pays for repairs:

Typically the seller, since they must deliver a property meeting MPRs. However, this is negotiable.

Timeline:

Repairs must be completed before closing. The appraiser (or another approved party) verifies completion.

Documentation:

Receipts, photos, contractor certifications may be required to show work was done properly.

Escrow holdbacks:

In rare cases, money can be held in escrow for post-closing repairs. This requires lender approval and specific conditions.

Appraisal Fees

VA appraisal fees are set by the VA and vary by location:

Typical range: $400-700

Complex properties: May be higher

Who pays: The buyer, as part of closing costs

You'll pay this fee when the appraisal is ordered, not at closing. It's due regardless of outcome.

Frequently Asked Questions

How long is a VA appraisal valid?

Six months from the date issued.

Can I attend the appraisal?

Generally no. The appraiser works independently. Your agent might be present to provide access.

What if the appraiser misses something?

If you believe there are errors, request a Reconsideration of Value through your lender.

Can I choose my VA appraiser?

No. The VA assigns appraisers to ensure independence.

What if the home is new construction?

New construction may require multiple inspections during the building process.

Do condos have different appraisal requirements?

Condos must be in VA-approved projects. The appraisal process is similar, but project approval is also required.

Understanding Appraised Value Factors

Appraised value isn't arbitrary. Appraisers consider:

Location factors:

Neighborhood quality and amenities
School district ratings
Proximity to employment, shopping, transit
Crime rates and safety

Property characteristics:

Square footage (living area)
Lot size
Number of bedrooms and bathrooms
Garage and storage space
Age and condition of the home

Market conditions:

Recent comparable sales
How long homes are taking to sell
Price trends in the area
Supply and demand dynamics

Improvements and features:

Updated kitchen and bathrooms
New roof, HVAC, windows
Finished basement or bonus rooms
Pool, deck, landscaping

The appraiser weighs all these factors against comparable sales to arrive at a value.

Comparable Sales Explained

Comparable sales ("comps") are the foundation of the appraisal:

What makes a good comp:

Similar size (within 10-20% of subject property)
Similar style (ranch vs. two-story, etc.)
Same neighborhood or very similar area
Recent sale (typically within 6 months)
Arm's length transaction (not a foreclosure or family sale)

Adjustments:

No two homes are identical. Appraisers adjust comp values for differences. More bedrooms? Adjust up. No garage? Adjust down. These adjustments are documented and justified.

When comps are challenging:

Unique properties with few similar homes
Rural areas with limited recent sales
Rapidly changing markets
New construction in established areas

In challenging situations, appraisers may use older sales or expand their search area.

Reconsideration of Value (ROV)

If you believe the appraisal is wrong, you can request reconsideration:

When to request:

You have comparable sales the appraiser missed
There are factual errors in the report
The appraiser made calculation mistakes
Unique features weren't properly valued

How to request:

Gather evidence (sales data, property information)
Submit through your lender (you can't contact the appraiser directly)
The appraiser reviews the additional information
They may revise the value or explain why they're not

What ROV isn't:

A guarantee of a higher value
An opportunity to argue without evidence
A way to pressure the appraiser

ROV works when you have legitimate additional information. It doesn't work as a negotiating tactic.

Market Conditions and Appraisals

Market conditions significantly affect appraisals:

In rising markets:

Recent comps may not reflect current values
Appraisals sometimes lag the market
Bidding wars can push prices above what appraisals support

In declining markets:

Recent comps may be higher than current market
Appraisals may come in at or below contract price
Foreclosure activity can distort comp values

In stable markets:

Appraisals typically align closely with contract prices
Fewer surprises and value disputes
Standard process applies

Understanding your local market helps set realistic expectations.

Working With Cornerstone on Appraisals

At Cornerstone First Mortgage, we guide you through the appraisal process:

Setting expectations:

We explain what to expect before the appraisal is ordered.

Tidewater support:

If Tidewater is invoked, we help gather supporting information quickly.

Value issues:

If the appraisal comes in low, we discuss your options and help negotiate.

Condition requirements:

We coordinate repair verification to keep closing on track.

The appraisal is a critical step. We make sure it doesn't become a roadblock.

What Happens After the Appraisal

If value supports contract price:

You proceed normally. The appraisal goes into your loan file, and underwriting continues.

If value is low:

You choose from the options discussed above (renegotiate, pay difference, ROV, or walk away).

If conditions are noted:

Seller completes required repairs
Repairs are documented (receipts, photos)
Appraiser or approved party verifies completion
You proceed to closing

Conditions don't kill deals – they just add steps.

Tips for a Smooth Appraisal

For buyers:

Share any information about the property that supports value
Be prepared for various outcomes
Understand your options if value comes in low

For sellers:

Ensure easy access to all areas of the home
Have documentation of recent upgrades ready
Address obvious condition issues before appraisal

For everyone:

Be patient – appraisals take time
Communicate through proper channels (your agent or lender)
Don't try to influence the appraiser directly

The Bottom Line on VA Appraisals

VA appraisals protect you by ensuring the home meets value and condition standards. While they can feel like an obstacle, they're actually a safeguard for your investment.

Most VA appraisals go smoothly. When issues arise, there are established processes to address them. Understanding the process helps you navigate it with confidence.

Your lender and real estate agent are your guides through this step. Lean on their experience and ask questions when you need clarity.

VA Loan Appraisal Process: What to Expect and How to Prepare

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