VA appraisal repairs in California: who pays and how it actually works
The VA appraisal is more rigorous than a conventional appraisal about minimum property requirements. When the appraiser flags repair items in a California home, who pays — and how do you keep the deal from falling apart? Here is the practical playbook for California VA buyers.
What the VA appraisal looks for
The VA appraisal serves two roles: it confirms value (what conventional appraisals do) and it certifies that the property meets minimum property requirements (MPRs). The MPRs cover safety, sanitation, and structural soundness. Common items the appraiser will flag:
- Roof life — typically wants at least three years of remaining life
- Heating system function (cooling system requirements apply where relevant)
- Water heater condition and capacity
- Functional plumbing, no leaks
- Electrical system in working order
- No peeling lead-based paint on pre-1978 homes
- Safe access to the home
- Septic and well systems where applicable
Who pays for repairs in California?
The default answer in California is "it depends on the contract." The VA does not specify which party pays. The contract you and the seller sign controls this. There are three common ways to structure it:
Seller pays
The seller agrees to complete required repairs before closing. This is common in buyer's markets where sellers have less leverage. The repairs must be complete (and re-verified) before the appraisal can certify the property and closing can occur.
Buyer pays
The buyer agrees to handle repairs out of pocket. This is sometimes possible if the seller has limited cash and the buyer can budget for it. The VA appraisal still has to be re-verified, which means the repairs must complete before closing.
Credit instead of repairs
Sometimes the seller agrees to a closing cost credit equal to the repair cost, and the buyer handles repairs post-closing. This works only if the repair items are not safety-critical — the VA will not close on a home with active safety hazards.
Common repair items in California markets
Most California metros are high-cost — VA loan limits scale dramatically in coastal counties. Wildfire insurance is a real underwriting consideration. Disabled-veteran property tax exemption is substantial in California.
In addition to those state-specific items, the most common appraisal-flagged repairs across California markets:
- Older roof on a home approaching the three-year remaining life threshold
- Water heater past its expected service life
- Garage door with non-functional safety reverse
- Pre-1978 home with paint condition issues
- Termite damage or active infestation
How to set the contract up for success
Before signing the purchase contract, decide with your agent how repair items will be handled. Three pieces of contract language matter:
- Repair cap. Set a dollar threshold above which the buyer may walk if the seller refuses to repair. Without this, you can be forced to either accept all repairs at your cost or lose your earnest money.
- Re-inspection clause. The contract should specify that repairs must be re-verified by the VA appraiser (or a qualified party) before closing.
- Timeline for repairs. Repairs must complete before the appraisal re-verification, which must complete before closing. Build buffer into your closing date.
Common questions from California VA buyers
Can the seller refuse VA repairs and demand we walk?
Yes, this happens. If the contract does not require repairs and the seller refuses voluntarily, the buyer's options are: pay for repairs yourself, terminate the contract, or accept the property as-is (typically not possible with VA-flagged safety items).
What if the appraisal value comes in low in San Diego?
Separately from repairs, the appraisal might value the home below the contract price. You can renegotiate, pay the difference in cash, request a tidewater (low value challenge), or walk. California listing agents experienced with VA are usually willing to renegotiate when the appraisal is supportable.
How many days do I have to handle appraisal issues?
Depends on the contract. Typical California contracts give 30-45 days for the entire transaction. Repair negotiations and re-inspection eat into that. Plan for a buffer.