Thinking about buying or selling a home? You’ll inevitably encounter the term “VA appraisal.” But what exactly is it? This comprehensive guide will walk you through everything you need to know about VA appraisals, ensuring you’re well-prepared for this crucial step in the home-buying process.
What is a VA Appraisal?
A VA appraisal is a professional assessment of a property’s value conducted by a qualified, government-approved appraiser. It’s specifically required for veterans and eligible service members using their VA home loan benefits. Unlike a standard appraisal, a VA appraisal must adhere to strict guidelines set by the Department of Veterans Affairs (VA).
Why is a VA Appraisal Necessary?
The VA appraisal protects both the veteran and the lender. It verifies that the home’s value justifies the loan amount, safeguarding the lender from potential losses. For the veteran, it ensures they’re not overpaying for the property. 
Who Orders a VA Appraisal?
Typically, the lender ordering the VA loan initiates the appraisal process. They’ll select an appraiser from the VA’s approved list. You, the buyer, won’t directly order the appraisal, but you’ll receive a copy of the results.
How Much Does a VA Appraisal Cost?
The cost of a VA appraisal varies depending on factors like location and property size. However, the veteran or buyer is usually not directly responsible for paying for this appraisal; the lender typically covers the expense.
The Appraisal Process: Step-by-Step
The process generally involves the appraiser inspecting the property, reviewing comparable sales data, and preparing a detailed report. This report will be sent to the lender and you.
What Happens if the Appraisal Comes in Low?
If the appraised value is less than the sale price, the deal could be renegotiated, with the seller potentially lowering the asking price to meet the appraised value. Alternatively, the buyer might withdraw from the purchase. Learn more about negotiating home prices.
Understanding the Appraisal Report
The appraisal report is a crucial document, outlining the property’s condition, features, comparable sales in the area, and the final determined value. Carefully review this report.
What to Expect During the Appraisal Inspection
The appraiser will thoroughly inspect the property, both inside and out, taking notes, photos, and measurements. Be prepared to answer any questions they might have.
Factors Affecting the Appraisal Value
Several factors influence a home’s appraised value, including location, size, condition, features, and recent comparable sales in the neighborhood. Check out this resource on home valuation factors.
Comparable Properties (Comps)
The appraiser will research similar properties recently sold in the area to help determine a fair market value for the subject property. These are called “comps.” 
The Importance of a Thorough Inspection
Before the appraisal, you should have your own home inspection conducted. This will help you identify any potential issues that the appraiser might find, allowing you to address them proactively.
How Long Does a VA Appraisal Take?
The timeline can vary, but generally, a VA appraisal takes a few weeks to complete. Factors like the appraiser’s workload and the complexity of the property can impact the timeframe.
What if I Disagree with the Appraisal?
If you strongly disagree with the appraisal, you can discuss your concerns with the appraiser or the lender. However, challenging the appraisal is often a complex process.
VA Appraisal vs. Traditional Appraisal
While both assess property value, VA appraisals follow stricter guidelines, focusing on the property’s suitability for veterans and adhering to specific VA requirements. Read more about different types of appraisals.
Getting Approved for a VA Loan
The appraisal is just one step in obtaining a VA loan. Meeting credit and income requirements is equally crucial. Find out more about VA loan eligibility.
Working with Your Lender
Maintain open communication with your lender throughout the appraisal process. They can answer your questions and guide you through any challenges.
Preparing for Your VA Appraisal
Make sure the property is clean and accessible for the appraiser. Provide any necessary documentation requested by the lender or appraiser. 
Conclusion
Understanding the VA appraisal process is vital for veterans and eligible service members looking to utilize their home loan benefits. By being prepared and informed, you can navigate this crucial stage efficiently and effectively. Remember, your lender is there to support you.
Frequently Asked Questions
What happens if the appraisal is lower than the offer price? The buyer and seller will likely need to renegotiate the price or cancel the sale.
Who pays for the VA appraisal? The lender usually covers the appraisal cost.
How long does the appraisal process typically take? It usually takes a few weeks, but it can vary.
Can I be present during the appraisal? While not always required, it’s recommended to be available to answer any questions the appraiser might have.
What if the appraiser finds problems with the property? The lender may require repairs before approving the loan, or the buyer may renegotiate the price to reflect the necessary repairs. Consult with a real estate professional.
