VA appraisals generate repair conditions or value issues more often than veterans expect — but the vast majority of these problems can be resolved without losing the deal. The key is knowing your options and responding quickly. Contact MaxVALoan when appraisal issues arise — we have handled hundreds of these situations and know how to keep deals moving. See also our VA appraisal checklist to understand what the appraiser looks for.
What It Means
VA appraisals produce two types of problems: (1) MPR repair conditions — the appraiser requires repairs before the loan can close, and (2) low appraisal value — the appraised value comes in below the purchase price, creating an appraisal gap. Both are common, both are manageable with the right approach.
Requirements
Most common MPR repair conditions and solutions:
- Roof condition: Missing shingles, deterioration, or less than 2 years remaining life. Fix: seller completes roof repair or replacement. Re-inspection required.
- Peeling paint (pre-1978 homes): Lead paint MPR requires scraping, priming, and repainting deteriorated surfaces. Fix: relatively inexpensive and quick — usually $500–$2,000.
- Electrical issues: Double-tapped breakers, missing GFCI in bathrooms/kitchens, exposed wiring. Fix: licensed electrician typically resolves in 1 day.
- Plumbing leaks: Active leaks under sinks or at supply lines. Fix: licensed plumber, usually same day.
- HVAC not operational: Heating system must function and be capable of maintaining 50°F. Fix: HVAC service call or replacement.
- Pest infestation (termites): Active wood-destroying insect infestation requires treatment. Fix: licensed pest control company, report required.
- Low appraisal value: Appraised value below purchase price. Fixes: renegotiate price with seller, submit Reconsideration of Value (ROV) with additional comparable sales data, pay the difference in cash, or invoke the VA escape clause to exit.
Examples
Repair condition resolved: Appraiser requires painting of deteriorating exterior paint (pre-1978 home). Seller agrees to hire painter. Work completed in 3 days. Re-inspection confirms compliance. Loan closes 7 days later than originally planned — manageable with a contract extension.
Low appraisal negotiated: Contract price: $420,000. Appraised value: $405,000. Buyer's agent presents three recent comparable sales supporting $418,000. ROV submitted with data. Appraiser revises to $415,000. Seller agrees to reduce price from $420,000 to $415,000. Deal closes.
Escape clause used: Appraiser flags foundation cracking, active mold, and failing electrical panel. Estimated repair cost: $35,000. Seller refuses to negotiate. Veteran invokes VA escape clause — earnest money returned in full. Veteran moves on to a better property.
Tips
- Always include the VA escape clause in your purchase contract — it is your protection if appraisal issues cannot be resolved
- For low appraisals, gather comparable sales data before submitting an ROV. An ROV without supporting data is unlikely to succeed
- Build appraisal buffer time into your contract — request 10 extra days beyond the expected appraisal date for re-inspection if conditions arise
- Ask your real estate agent to attend the appraisal inspection — a proactive agent can point out recent upgrades and provide comparable sales to the appraiser in real-time
- Review our VA MPR guide before making an offer to identify likely issues upfront
Frequently Asked Questions
Q: How often do VA appraisals come in low?
A: About 10%–15% of VA appraisals come in below the purchase price. Most are resolved through renegotiation or ROV. Only a small percentage result in the deal falling apart.
Q: Can the seller refuse to make VA-required repairs?
A: Yes — sellers have no legal obligation to make repairs. However, if repairs are not made, the loan cannot close. Veterans can pay for repairs themselves (if willing), renegotiate, or exit using the escape clause.
Q: How do I submit a Reconsideration of Value?
A: Through your lender, who submits it to the VA on your behalf. You provide the comparable sales data to support a higher value. The appraiser reviews and may or may not revise. Ask MaxVALoan to guide you through this process.
