The VA Home Loan has gotten a bad reputation with home sellers, largely because sellers are scared of VA appraisals. Why? Let’s talk about it.

First, want to know the best way to handle sellers’ concerns over a low VA appraisal? Join Savvy Veteran Homebuyer to learn how to position your offer so that a seller isn’t scared of a low appraisal. 

To better understand why sellers are scared of VA appraisals, you have to first understand the role that the Appraiser plays in the home buying process. An appraisal is required by a Mortgage Lender to confirm the value of the property being purchased. This is important for the bank because the value of the home protects them from taking a loss if the home goes into foreclosure.

VA Appraisers have a reputation for being more conservative than other appraisers. We have yet to find any statistics that prove or supports this widespread assumption, but it exists nonetheless. This baseless assumption is an obstacle buyers may have to address when trying to get offers accepted.

If the VA Buyer is taking advantage of the 0% home financing aspect of the loan, and an appraiser values the property at LESS than the agreed-upon purchase price, it can often derail the transaction and send the seller back to market looking for another buyer. Starting over is a huge loss of time and sometimes money to sellers. They will also have to explain to other interested parties why their initial contract fell through which can impact the value of future offers.