Last updated October 29, 2026
What should a buyer do when the appraisal comes in high but the inspection found problems? Keep negotiating the problems. At 7112 Willow Wood Drive in Northwoods, the VA appraisal came in at $175,000, $15,100 over my buyer’s $159,900 contract. It said nothing about the blocked sewer line, the roof, the sink or the termites. Step into my seat, make the calls, then read what happened.
It depends on what the cash is worth to you against the risk of losing the house. Seller-paid closing costs lower the cash you bring; pushing for all of it can cost you the house if another buyer appears. Here the buyer asked for $4,800, the seller countered at $2,400, and the buyer took it to lock in $159,900.
How it went on this sale: On June 12 I sent my buyer, an Air Force veteran using a VA loan, the comparable sales, the seller’s disclosure and the lead-based paint paperwork, and told them the listing agent had no offers in hand. We offered $159,900 with $1,500 earnest money, $4,800 toward closing costs and a July 11 closing. The seller kept the price and cut the closing-cost help to $2,400; the contract was accepted June 13. How I screen a house before a VA offer →
No. An appraisal estimates market value for the lender, and a VA appraiser also checks the VA’s basic condition requirements. It isn’t a home inspection, and it doesn’t certify that the roof, plumbing or sewer line are sound. This one came in $15,100 over the price and still came with two conditions, the furnace and an open junction box.
How it went on this sale: On June 20 the lender reported the appraisal at $175,000. It came with two conditions the loan couldn’t close without: the furnace hadn’t cycled while the appraiser was there, so it needed a reinspection to confirm it worked, and an open junction box had to be fixed. The same day, I delivered the buyer’s inspection notice. The higher value didn’t remove a single item from it. What happens when a VA appraisal has conditions →
Don’t count on it. VA buyers often expect the appraiser to flag every condition problem, and many do get flagged, but the appraiser judges what they see that day, and it isn’t a full inspection. On this house I pointed out three problems at the showing; the appraiser called out one, explained away another and didn’t mention the third.
How it went on this sale: At the showing I pointed out an open junction box, peeling paint and moisture with mold under the sink. The appraiser made the junction box a condition of the loan. Because of where it was, the appraiser read the peeling paint as peeling drywall mud, not paint. The moisture under the sink wasn’t in the appraisal at all, so it was never a condition the seller had to clear for the loan. Our home inspector found it, it went into the repair agreement, and we confirmed it was fixed at the walk-through on closing day. What I look for before a VA offer →
Ask about the pipe as it is today. A replacement date tells you the line is newer; it doesn’t tell you it’s clear. If the camera shows a blockage, ask the seller to clear it, usually by cabling the line, and get the invoice. Here the seller said the lateral was replaced in 2024, the inspection still showed it blocked, and the seller agreed to cable it.
How it went on this sale: The seller’s June 27 response agreed to most of the requested work and said the city had replaced the sewer lateral in 2024. By June 30 I had narrowed what was left to two things: the blockage and the $150 the buyer had paid for the appraiser to come back for the furnace. I asked for the lateral to be cabled, and the seller agreed. A blocked lateral can back sewage up into the house; clearing it before closing kept that problem, and that bill, off my buyer’s first month in the house. What a St. Louis inspection covers →
Not necessarily. A municipal occupancy inspection checks the city’s own list before a new owner moves in; your home inspection looks at the house for you. A passed occupancy inspection means the city’s items are done, not that every problem in your report is. Get the city’s failure list and line it up against your report, so you know which repairs the occupancy work covers and which need their own agreement.
How it went on this sale: On June 28 I asked for Northwoods’s actual occupancy failure list to compare it with the buyer’s inspection report, instead of assuming the seller’s occupancy repairs covered everything. The final agreement listed the occupancy repairs separately from the roof, sink, furnace, termite and sewer items, and both sellers signed it on July 1.
| Item | Where it came from |
|---|---|
| Northwoods occupancy repairs | The city’s occupancy inspection |
| Roof repairs | Buyer’s inspection |
| Sink repairs | Buyer’s inspection |
| Furnace inspection by a qualified technician | Buyer’s inspection and the VA appraisal condition |
| Termite treatment | Buyer’s inspection |
| Sewer lateral cabled | Buyer’s inspection; added in the final round |
| Receipts and lien waivers before the final walk-through | Our request, to verify all of the above |
Not by itself. A signed repair agreement is a promise, and an invoice shows someone was paid; neither proves the specific problem is fixed. Write receipts and lien waivers into the agreement, match each one to the item it covers, and look at anything the paperwork doesn’t settle at the final walk-through. On this purchase, one receipt covered roof labor and the sink still had to be checked in person.
How it went on this sale: The paid furnace inspection receipt came July 1. On July 9 I asked for proof of what was done on the roof, the sink repair, the termite treatment records and the sewer cabling invoice; the lender needed the termite records. By July 10 I had the occupancy, sewer cabling and furnace paperwork, and the termite records came that evening. On July 11 I circulated the receipts, noted that the labor receipt was for the roof, and flagged that the area under the sink still needed to be seen at the walk-through. At the walk-through that morning, it was fixed. What to look at before you buy →
On time. At the 10 a.m. walk-through on July 11 the sink repair checked out, closing was at 11, and the title company confirmed the sale closed and funded that day at $159,900, with $2,400 of the buyer’s closing costs paid by the seller.
| Item | Result |
|---|---|
| Contract price | $159,900 |
| VA appraisal | $175,000 |
| Seller-paid closing costs | $2,400 |
| Sewer lateral | Cabled before closing |
| Repairs and treatments agreed | 6, with receipts and lien waivers |
| Closed and funded | July 11, 2025 |
The $15,100 between the price and the appraisal is the lender’s estimate of value on one day, not money in the buyer’s pocket. What the buyer could count on was the work written into the agreement and checked before closing.
| Date | What happened |
|---|---|
| Showing | I point out an open junction box, peeling paint and moisture under the sink |
| June 12 | Comparable sales, seller’s disclosure and lead-based paint paperwork sent to the buyer; the listing agent has no offers in hand. Offer: $159,900, $1,500 earnest money, $4,800 seller-paid closing costs, VA, July 11 closing |
| June 13 | Seller counters; contract accepted at $159,900 with $2,400 seller-paid closing costs |
| June 20 | Inspection notice delivered. VA appraisal: $175,000, with two conditions to clear before the loan could close: the furnace and the open junction box. It reads the peeling paint as drywall mud and says nothing about the sink |
| June 27 | Seller’s response: most requested work agreed; says the sewer lateral was replaced in 2024 |
| June 28 | I ask for the Northwoods occupancy failure list to compare against the inspection report |
| June 30 | Open items narrowed to the sewer blockage and the $150 VA reinspection; I ask for the lateral to be cabled |
| July 1 | Both sellers sign the buyer’s counterproposal. Paid furnace inspection receipt arrives. Title commitment shows a state tax lien against the seller, a seller-side issue for title to clear |
| July 8 | Lender approves the final Closing Disclosure |
| July 9 | I ask for roof, sink, termite and sewer cabling documentation; termite records needed for the lender |
| July 10 | Occupancy, sewer cabling and furnace documentation in hand; termite records arrive that evening; roof still open |
| July 11 | Receipts circulated; the roof receipt covers labor; the area under the sink still to be checked in person. Walk-through 10 a.m.: the sink repair checks out. Closing 11 a.m. Closed and funded |
A good appraisal answers one question: is the house worth the price? It doesn’t answer whether the house works. Keep those questions separate, and keep asking the second one until closing.
Not reliably. Of the three problems I pointed out at the showing, the appraiser made one a loan condition, read one as drywall mud and missed the moisture under the sink, so the sink was never an appraisal condition. Your inspector and your agent are the ones looking for you.
No. Here the house appraised $15,100 over the price and still needed a furnace check, roof and sink repairs, termite treatment, occupancy work and a sewer line cleared.
No. “Replaced in 2024” didn’t mean clear in 2025. The inspection showed the blockage, and that’s what got it cabled.
When you can match a receipt to the item and see it, not when the agreement is signed. The sink on this house was still on the walk-through list on closing day, and we saw it fixed before we signed.
Does a VA appraisal check for mold?
Not reliably. On this Northwoods purchase the appraiser made the furnace and an open junction box conditions of the loan but didn’t mention the moisture and mold under the sink, so it was never an appraisal condition; the buyer’s home inspector found it.
Can you ask a seller to clear a sewer line that was recently replaced?
Yes. On this Northwoods purchase the seller said the lateral was replaced in 2024; the buyer’s inspection showed a blockage, and the seller agreed to have it cabled before closing.
Who pays when a VA appraiser has to come back?
It’s negotiable. On this purchase the buyer paid the $150 reinspection fee to confirm the furnace worked, and I raised it in the final round of repair negotiations.
More in this series: Lessons From a Sale · Buying the next house before selling the first · The septic that changed who could buy the house · Related: What kills VA deals in St. Louis · VA appraisal conditions · North County
Grew up in South St. Louis, lived in Dogtown for 6 years, now in South County. You’ll find us at Wellspring on Lindbergh on Sundays. I'm not selling you a house — I'm showing you how to think about buying or selling a house.