Vetted VA LIVE – Appraisal or Inspection?

Understanding the Difference Between a VA Appraisal and a Home Inspection

Many new homebuyers assume an appraisal and inspection are the same thing — but they serve very different purposes. In a VA loan, both steps are essential to protecting the veteran and ensuring the home meets VA standards.

What a VA Appraisal Is (and Isn’t)

A VA appraisal determines the property’s fair market value and ensures it meets the VA’s Minimum Property Requirements (MPRs) — meaning the home must be safe, sound, and sanitary (VA Lender’s Handbook, Ch. 12).

It’s not a full inspection, and the appraiser isn’t checking every system or cosmetic detail. Instead, they verify that the home is livable and worth at least the purchase price.

What a Home Inspection Covers

A home inspection is optional but highly recommended. It’s ordered by the buyer, not the lender. The inspector evaluates the home’s condition — roof, plumbing, foundation, HVAC, and more — to identify needed repairs.

Unlike the appraisal, the inspection is about protecting you, not the lender. It’s your chance to know exactly what you’re buying before committing.

Why Both Matter in a VA Loan

Protecting the Veteran Buyer

The VA requires an appraisal to protect veterans from overpaying for unsafe or unsound properties. But since inspectors go deeper into the home’s systems and structure, combining both steps gives you full protection — value and condition.

The VA’s Minimum Property Requirements (MPRs)

According to the VA Handbook, the property must be:

  • Safe (no hazards or lead paint risks)

  • Structurally sound (no foundation or roof failure)

  • Sanitary (adequate water, sewage, and utilities)

These standards ensure your home supports long-term livability.

The VA Appraisal Process Explained

How VA Appraisers Are Assigned

Unlike conventional loans, VA appraisers are assigned directly by the VA, not by the lender. This system prevents conflicts of interest and guarantees every veteran gets an unbiased valuation.

The Tidewater and Reconsideration of Value (ROV) Process

If the appraiser can’t find comparable sales to support the value, they can invoke Tidewater — a 48-hour window for the lender and agents to provide additional comparable sales.
If the appraised value still comes in low, the veteran can request a Reconsideration of Value (ROV). The VA staff appraiser reviews new data and may adjust the final value.
These two steps make the VA process more veteran-friendly than any other loan type.

Common VA Appraisal Issues

Commonly cited issues include:

  • Peeling or chipping paint

  • Missing handrails

  • Unstable decks or stairs

  • Roof damage or leaks

  • Signs of wood rot or termites

Most are easy to fix — and can often be negotiated between buyer and seller.

The Home Inspection Process Explained

Choosing a Qualified Inspector

Inspectors don’t need a VA license, but they should be certified and experienced. Ask your real estate agent for trusted recommendations or verify credentials online. Always confirm what’s included in the inspection report.

What Inspections Typically Cost

Costs range from $400–$700, depending on size and location. Additional services like sewer scope or roof inspections can add $100–$300 each.

Optional and Regional Inspections

Certain regions may require additional checks:

  • Termite/Wood-Destroying Pest – mandatory in some states

  • Water Quality Test – required for private wells

  • Radon Test – recommended in certain regions

Negotiating Repairs and Credits

When to Request Repairs

If the inspection finds major issues (like foundation damage or roof failure), you can ask the seller to fix them before closing. For health or safety concerns, VA may require repairs before approving the loan.

When to Ask for a Credit Instead

If the issues are minor or cosmetic, a credit at closing may be better. That way, you control who performs the work and ensure it’s done to your standards.

Contingencies and the VA Escape Clause

Understanding the Appraisal and Inspection Contingencies

Contingencies let you cancel or renegotiate if the home doesn’t appraise or pass inspection. Some buyers waive contingencies to compete, but doing so removes vital protection.

How the VA Escape Clause Protects You

Every VA loan includes the VA Amendatory (Escape) Clause. It says the veteran can’t be forced to buy a home for more than its appraised value. Even if the contract says “as-is,” this federal protection overrides it (VA Lender’s Handbook, Ch. 3).

Regional and Special Requirements

Termite, Water, and Radon Inspections

Depending on your region, VA may require:

  • Termite report and clearance (especially in humid states)

  • Water quality testing for homes on private wells

  • Radon testing in high-risk areas

Private Roads and Outbuildings

If access roads are privately owned, the VA may require a road maintenance agreement to ensure shared upkeep.
Outbuildings (like barns or sheds) generally aren’t included in value unless they’re livable accessory units.

Expert Tips from Vetted VA Professionals

What to Watch for Before the Appraisal

  • Check for peeling paint or missing handrails before the appraiser arrives.

  • If you’re using a VA loan, offer to fix small items yourself — it helps your offer compete.

Why an Experienced VA Team Matters

A seasoned VA lender and realtor can make or break your transaction. They understand MPRs, the Tidewater process, and how to communicate with appraisers and listing agents. If your lender or agent doesn’t know how VA loans work, find one who does.

Final Thoughts: Protecting Your Investment as a Veteran Buyer

Your VA appraisal ensures value.
Your home inspection ensures safety.
Together, they protect your investment, your family, and your peace of mind.

Never skip the inspection, and always work with professionals who know the VA process inside and out. The right team can turn a stressful purchase into a successful mission.