REAL Talk - Topic: Navigating VA Appraisals

Insights for Real Estate Professionals

Published Saturday, March 1, 2025
by Bill Bloom

 

The VA appraisal process is a critical step in facilitating homeownership for veterans and service members. In my opinion, a VA appraisal is the best because of the multiple opportunities it provides for the appraiser to hit the value and the flexibility to use an MPR waiver. Understanding this process can help you serve your clients better, overcome challenges, and ensure smoother transactions. Here, we’ll cover key components, including Tidewater, Reconsideration of Value (ROV), Minimum Property Requirements (MPRs), and MPR waivers. 


The Tidewater Initiative
One unique feature of the VA appraisal process is the Tidewater Initiative. If the appraiser determines the property may not meet the agreed-upon purchase price, they invoke Tidewater. This allows agents to provide additional comparable sales data before the appraisal is finalized.
 
Tidewater is an opportunity to collaborate and advocate for the property’s value. Responding promptly with robust comps within the 48-hour timeframe can influence the appraisal outcome. Preparing your clients for this process reduces stress and builds confidence in your expertise.
 
Reconsideration of Value (ROV)
If the appraised value still falls short, buyers can request a Reconsideration of Value (ROV). This allows submission of new evidence, such as additional comps or corrections to inaccuracies in the appraisal report.
 
As an agent, collaborating with the buyer and lender to compile compelling evidence is critical. Providing accurate, well-documented information increases the chances of a favorable reconsideration.
 
Minimum Property Requirements (MPRs)
MPRs ensure VA-financed homes are move-in ready and free from safety risks. Common MPR issues include:
  • Roofing: Must have sufficient life expectancy and no leaks.
  • Mechanical Systems: HVAC, electrical, and plumbing systems must function and meet local codes.
  • Access and Utilities: Safe access and connection to approved utilities.
  • Pests: Free from infestations, with proper inspection if required.
  • Hazards: No environmental hazards, such as lead paint or mold.

Proactively addressing potential MPR issues can save time and prevent surprises. A pre-listing inspection or working with a VA-savvy agent is invaluable.

MPR Waivers

One of the best features of VA appraisals is the option to request an MPR waiver. This allows the purchase to proceed despite certain deficiencies, typically for non-safety-related issues. For example, minor peeling paint or a missing handrail might be waived if the veteran and lender agree.

Waivers require VA approval and involve submitting a formal request explaining why the issue should not block the loan. Agents play a vital role by coordinating with the buyer’s lender and ensuring timely submission of required documentation.

Key Takeaways for Agents
  1. Be Proactive: Familiarize yourself with VA appraisal requirements and set realistic expectations with clients.
  2. Build a Network: Partner with VA-experienced lenders, appraisers, and contractors to navigate hurdles effectively.
  3. Communicate Clearly: Keep open lines of communication with all parties to resolve issues promptly.
  4. Stay Informed: Update your knowledge of VA guidelines regularly to remain effective.
 
By mastering the VA appraisal process, you’ll position yourself as a trusted advocate for veterans. With multiple opportunities to meet the value and the flexibility of MPR waivers, VA appraisals stand out as a veteran-friendly solution that makes homeownership achievable for those who have served.

Bill Bloom

Embrace Home Loans

 

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