Got a Low VA Appraisal in California? Here’s How to Request a Reconsideration That Actually Works

A low VA appraisal can instantly disrupt your home buying plans in California, especially in markets like San Diego, Los Angeles, Orange County, Sacramento and the Bay Area where prices move quickly. Many veterans feel frustrated when the appraised value comes in below the offer, but the good news is that the VA gives you a structured path to challenge that number. It is called a Reconsideration of Value.

Understanding the VA loan appraisal process, the VA loan appraisal requirements and how to prepare a strong appeal can help you secure the value you need for approval. This guide explains how the process works, why low values often happen in California and how to properly request a reconsideration that lenders and appraisers take seriously.

How the VA loan appraisal process works in California

The appraisal is a required part of every VA loan. It ensures the property is safe, structurally sound and priced fairly based on recent market data.

Here is how the VA loan appraisal process typically works:

Order request

Your lender orders the appraisal through the VA portal. You cannot choose your own appraiser.

On site inspection

The appraiser visits the home and checks its condition against VA loan appraisal guidelines. This includes structural components, roofing, heating, electrical systems and overall safety.

Comparable sales review

The appraiser reviews similar homes recently sold in the area. This is where the California market often creates challenges because prices sometimes rise faster than comparable sales can support.

Final report

The appraiser provides an estimated value which the lender uses to confirm the loan amount.

A low result is what creates a VA loan appraisal gap.

Understanding VA loan appraisal requirements

The VA sets minimum standards to protect both the buyer and the lender. These VA loan appraisal requirements include:

• Safe and functional heating and cooling
  
  
• Proper electrical wiring
  
  
• Solid foundation
  
  
• No major roof leaks
  
  
• No health related hazards
  
  
• Adequate living space
  
  
• Access to clean water
  
  
• Functional plumbing

Properties in California must meet these requirements in full to qualify. Homes with older systems or deferred maintenance may receive lower valuations or require repairs.

Why low VA appraisals happen so often in California

California has one of the fastest moving real estate markets in the country. When homes appreciate quickly, comparable sales used in the appraisal may lag behind current list prices.

Common reasons for low values include:

• Limited recent comparable sales
  
  
• Rapid price increases
  
  
• Unique property features that are hard to compare
  
  
• Overpriced seller expectations
  
  
• Renovations not documented
  
  
• Appraiser assigned from outside the local area

These factors create what buyers describe as a VA loan appraisal gap between the contract price and the appraised amount.

What to do when you get a low VA appraisal

Before requesting a reconsideration, complete the steps below.

Review the appraisal for errors

Check for:

• Incorrect square footage
  
  
• Missing upgrades
  
  
• Wrong number of bedrooms
  
  
• Outdated or inappropriate comparable sales
  
  
• Missed recent California sales that support your purchase price

Even small mistakes can change the value.

Talk to your real estate agent

Ask your agent to pull updated comparable sales. Many times, there are recent closings the appraiser did not include.

Check for California market factors

Some neighborhoods move so fast that comps from just a few months earlier are outdated. Recent closings may justify a higher value.

How to submit a VA Reconsideration of Value in California

A Reconsideration of Value is a formal request to review and update the appraisal. This process has specific steps and must follow VA loan appraisal guidelines closely.

Step one: Gather strong comparable sales

Your agent should submit:

• Recent sales near the property
  
  
• Homes with similar features
  
  
• Homes within the same neighborhood boundaries
  
  
• Sales that closed after the appraisal date but before closing
  

Step two: Provide evidence of missed upgrades

If the home was improved recently, include:

• Receipts
  
  
• Contractor invoices
  
  
• Permit records
  
  
• Before and after photos

Step three: Write a clear explanation

Explain why you believe the value is inaccurate. Keep it factual and avoid emotional arguments.

Step four: Submit the request through your lender

The lender is the only party who can contact the VA for reconsideration. Neither the buyer nor the agent can communicate directly with the appraiser.

Step five: Wait for VA review

The VA reviews the request and either adjusts the value or keeps the original appraisal.

A strong packet with accurate data greatly increases the chance of success.

Who pays for the VA loan appraisal cost

In most California transactions, the buyer pays the VA loan appraisal fee. This cost varies by county but typically falls between five hundred and nine hundred dollars depending on property type and location.

Since California has higher demand and fewer appraisers, fees may run slightly higher in some counties.

What the VA loan appraisal checklist typically includes

Every appraiser uses a detailed checklist to confirm the property meets VA safety rules. This includes:

• Structural soundness
  
  
• No peeling paint for older homes
  
  
• Proper ventilation
  
  
• Functioning utilities
  
  
• Working water heater
  
  
• No pest related issues
  
  
• Safe stairways and handrails
  
  
• Proper drainage

Homes that do not meet this list may require repairs before closing.

VA loan appraisal who pays for repairs

The buyer and seller can negotiate repairs. The VA does not require the buyer to pay, but the repairs must be completed to close. Many sellers in California agree to the repairs to avoid losing the sale.

Comparison table: Standard appeal vs VA Reconsideration of Value

This table helps veterans decide the best strategy when faced with a VA loan appraisal gap.

Tips to increase your chances of winning a reconsideration in California

• Use comps inside the same neighborhood
  
  
• Include sales within the last thirty to ninety days
  
  
• Avoid using listings or pending sales
  
  
• Match features such as lot size, upgrades and square footage
  
  
• Provide clear evidence of improvements
  
  
• Keep your request short and factual

A well prepared reconsideration has a much higher chance of success.

Frequently asked questions about VA appraisals in California

Why was my VA appraisal so low

California prices change quickly and comparable sales may not keep up with seller pricing.

Can I challenge a VA appraisal

Yes. You can submit a reconsideration through your lender with strong comparable sales.

What is included in the VA loan appraisal cost

The fee covers the appraiser’s inspection, research and final report.

Does the seller have to lower the price

No. The seller can lower the price, contribute to repairs or wait for reconsideration results.

Can I switch lenders to get a new appraisal

No. Once the VA issues an appraisal on a property, it stays with the property for a set period.