Krystal Stearns Team

04/30/2025

11/09/2023

Scared of VA appraisals? I hear agents are reluctant to accept VA offers concerned that the appraisal will either not come in at value or requiring repairs that the seller does not want to make. Let’s clear up these myths. First- VA certified appraisers also perform appraisals on other loan types. They use the same comparable, market analysis and adjustments as they do on other loans such as Conventional and FHA. Now VA is not a fan of over appraising homes. An appraiser is hired by the lender as the home is the lender’s collateral for the loan. The appraiser also wants to protect the borrower from overpaying. VA does state; “The goal is to obtain a VA value estimate that does not exceed the price at which similar properties can be purchased in the current market.” As far as repairs go, VA is not looking at cosmetic items, they are looking at safety issues. Out of the thousand plus VA loans that I have closed I have seen about a dozen appraisals come in subject to and most could have been avoided if pointed out by the agents in advance and had them repaired. BUT a Veteran CAN waive repair items as long as it is not hazardous. All mortgages expect a home to be “move in ready” not just VA. The most common repair request I see is peeling paint. All homeowners should repair peeling paint. This can cause rotting wood, mold, etc. the other common one is proper railing on stairs, again homeowners should have these in place to avoid injury and liability. The wildest two that I have seen are one where the appraiser called for a basement door because the stairs were steep and the basement entrance was in the living room, someone could easily fall down into the basement, again homeowners have these things in place anyway. The other one was very soiled carpet. I don’t even want to know what the stains were from but it was subject to removal and I 100% supported this. It was to protect the buyer. A few good things about VA appraisals, 1. You have the chance to provide supporting comps if the appraiser is not finding any to support list price BEFORE the appraisal report comes in. Next if the home still does not appraise you can dispute it. I have won a few disputes. Lastly, unlike FHA appraisals that stay with the property, VA does not. A new VA buyer can come in and order a new appraisal.
Do you have questions or concerns on a home? Feel free to send me pictures of the issues and I will give you my professional opinion if it will be an issue or not.

08/06/2023