The VA appraisal process has a few rules that conventional and FHA buyers don't deal with: minimum property requirements, a heads-up called Tidewater when value looks short, and a built-in escape clause for the buyer. Listing agents sometimes avoid VA offers because they don't understand these. If you do, you can write VA offers that win and defend them through appraisal.
The short answer
VA assigns an appraiser to the loan. The appraiser checks value and whether the home meets VA's minimum property requirements (MPRs) for safety, soundness and sanitation. If the appraiser expects the value to come in below the price, VA's Tidewater process gives the agent a short window to send more sales data before the report is finished. If the value still comes in low, the buyer can request a reconsideration of value through the lender, renegotiate, pay the difference in cash, or use the VA escape clause, which lets the buyer cancel without losing earnest money if the price is above the VA value.
Step by step
- Tell the listing agent how VA works. Many worry about repairs and appraisal. Explain the process calmly in your offer email.
- Look at condition early. Peeling paint on older homes, broken handrails, roof issues, and missing heat can trigger MPR repairs. Flag them before writing.
- Make sure you're the point of contact. The lender lists a contact for the appraiser. Make sure Tidewater calls reach you or the listing agent.
- Prep comps in advance. Have a list of the best recent sales ready before the appraisal visit.
- Respond to Tidewater fast. If notified, send the appraiser solid sales data within the short window VA allows (typically two business days). Check the current timeline with the lender.
- Handle required repairs. If the appraiser calls for MPR repairs, negotiate who does them and get them done and re-inspected before closing.
- If value is short, choose a path. Reconsideration of value with better comps, renegotiate the price, the buyer covers the gap in cash, or the buyer cancels under the escape clause.
- Calendar everything. VA timelines and contract deadlines both matter.
VA appraisal at a glance
| Step | What happens |
|---|---|
| Appraiser assigned | Through VA's system |
| MPR check | Safety, soundness, sanitation |
| Tidewater | Early notice if value may be short |
| Report | Notice of value |
| Low value options | Reconsideration, renegotiate, cash, escape clause |
How to explain it to your client
Say it like this (to a VA buyer): "VA's appraiser checks two things: the value, and whether the house meets VA's basic safety standards. If it looks like the value will come in short, VA gives me a quick chance to send better sales, and I'll have those ready. And you're protected: if the value comes in under the price, you can cancel and get your earnest money back. You don't have to overpay."
Say it like this (to a listing agent): "My buyer's VA approved. I've already pulled comps for Tidewater, and I'll handle any repair items quickly."
Watch-outs
- Don't let VA offers scare sellers. Educate. VA buyers are often strong buyers.
- MPR repairs can take time. Line up contractors early.
- Tidewater windows are short. Have comps ready before the appraisal.
- The escape clause is real. Sellers should understand the value matters.
- Lender rules vary. Confirm current VA requirements with the lender.
Further reading
- The VA appraisal process in Colorado on kennarealestate.com
- FHA and VA home buying on kennarealestate.com
This is training for real estate agents. It isn't legal, tax or lending advice. A licensed loan officer sets loan terms. Check with your managing broker.
Questions
What is the Tidewater process?
An early notice from the VA appraiser when value may be short, giving the agent a short window to send more sales data.
What are VA minimum property requirements?
Basic standards for safety, soundness and sanitation. See va.gov.
Can a VA buyer pay over appraised value?
Yes, if they choose to cover the difference in cash.
What is the VA escape clause?
A required clause that lets the buyer cancel without losing earnest money if the price is above the VA value.
Who can request a reconsideration of value?
It goes through the lender, with supporting sales data.
Brian Lee Burke is the founder of PadLeaders, a Colorado real estate broker licensed since 2003, team leader of The Kenna Group at Keller Williams DTC (formerly Kenna Real Estate Group) and the author of Mastering Real Estate and The Real Estate Playbook. More about Brian.