How to Navigate the VA Home Appraisal Process
Updated: 3 days ago
The VA appraisal is the step that makes buyers and sellers the most nervous, usually because nobody explained it ahead of time. As a military spouse for more than 30 years and an Arlington Associate Broker with 560+ transactions, I can tell you it's very manageable once you know who does what and what your options are if the number comes in low.
This article is general information, not tax, legal or financial advice.
What the VA appraisal is for
A VA appraisal does two jobs. It sets the home's reasonable value, which caps how much VA will guarantee, and it checks that the home meets VA's minimum property requirements: safe, structurally sound and sanitary. It isn't a home inspection, and it doesn't replace one.
Who orders it
You and your agent don't pick the appraiser. Your lender requests the appraisal through VA's system, and VA assigns an independent fee appraiser from its panel. When the report is done, VA or the lender issues a Notice of Value. For existing homes, that value is typically good for six months.
The escape clause
Every VA purchase contract has to include VA's escape clause. If the home appraises for less than the price, you aren't obligated to buy it or lose your deposit. You can still go ahead if you choose, but the loan is based on the appraised value, so you'd cover the gap in cash.
If the value looks low: Tidewater
VA has a built-in early warning called Tidewater. If the appraiser thinks the value will come in below the contract price, they contact the point of contact named on the appraisal request before finishing the report. Your side then has two business days to send recent comparable sales. For each one, send the address, sale price, sale date, square footage and listing, if there is one. This is where a local agent earns their keep, because we know which nearby sales actually compare.
If the value is still low
Once the Notice of Value is issued, you have four realistic choices:
1. Renegotiate. Ask the seller to lower the price to the appraised value, or meet somewhere in between.
2. Pay the difference. Cover the gap in cash at closing.
3. Request a reconsideration of value. The veteran can ask VA in writing, usually through the lender, with market data that supports a higher value. VA aims to review it within five business days.
4. Walk away. The escape clause protects your deposit.
Termites in Virginia
VA requires wood-destroying insect information for the entire state of Virginia. Plan on a termite inspection for any VA purchase here. The contract says who pays and what happens if the inspector finds active insects or damage.
For sellers: getting ready for a VA buyer
VA's standards aren't about cosmetic updates. They focus on safety and working systems. Before you list, take care of the things that most often come up in appraisals:
Peeling or chipping paint, especially in homes built before 1978
Roof leaks or a roof near the end of its life
Heating, water heater, electrical and plumbing that work safely
Missing handrails, trip hazards and broken windows or doors
Moisture, wood rot or signs of termites
Clear access to the attic and crawl space so the appraiser can see them
Fixing these before you list beats a repair request with a tight deadline. My staging guide covers the rest of the prep.
In Northern Virginia
Values in Arlington, Alexandria and Fairfax can change from one block to the next, which makes good comps essential when Tidewater is triggered. I keep the recent sales ready for every VA offer I write. If you're buying near the Pentagon, Fort Belvoir or Quantico, my VA loan benefits guide is a good next read.
Sources: VA Lender's Handbook, chapter 9; VA Lender's Handbook, chapter 10; VA Tidewater and ROV training; VA local requirements.
Last reviewed: October 2026
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