What Happens If the VA Appraisal Comes in Low?

If the VA Notice of Value is below the contract price, the buyer and team should first review the report and deadlines. Possible paths include requesting a Reconsideration of Value with relevant market evidence, renegotiating the price, bringing eligible additional funds, changing the transaction, or using the VA escape clause to exit without forfeiting earnest money when its requirements are met.

What matters most

• Tidewater is an opportunity to provide market data before the final value is issued; it is not a guarantee of a higher value.
• A Reconsideration of Value should focus on credible comparables, factual errors, or market information—not pressure on the appraiser.
• The contract, escape clause, financing contingency, and response deadlines should be reviewed immediately.

How to use this answer

Ask the lender for the Notice of Value and the next-step process. The Realtor can gather closed comparable sales and identify factual issues, while the lender handles the formal submission. Keep repair requirements and value questions separate; both can affect closing, but they are different issues.

A simple example

A home is under contract for $425,000 and the VA value is $410,000. The parties might renegotiate to $410,000, split some of the gap, submit a supported value review, or cancel under applicable contract rights. The best path depends on cash, market evidence, deadlines, and the buyer’s comfort.

What to review before you decide

• Confirm the loan program, occupancy, property type, and timeline.
• Review the complete payment and cash-to-close estimate, not one number in isolation.
• Verify current program rules and lender requirements before moving money or signing a contract.