- VA appraisals rely heavily on recent and similar comparable sales to determine fair market value, not asking price or replacement cost.
- When sales comparables for a VA loan are limited or imperfect, appraisers may need to make larger adjustments or use more distant comps.
- Borrowers have options if VA home loan comparables don’t support the purchase price, including VA Tidewater, a Reconsideration of Value (ROV) or renegotiation.
If you’re close to the appraisal stage of your VA loan, you may feel like you’re on the home stretch. Your offer is accepted, inspections may be done and financing is moving forward. But the VA appraisal can still make or break the deal, especially when comparable sales don’t clearly support the purchase price.
While many buyers think appraisals are about confirming a home’s condition, VA appraisers are primarily focused on determining fair market value. And the most important tool they use to do that? Comparable sales, often called “comps.”
Understanding VA appraisal guidelines for comparables can help borrowers, sellers and agents avoid surprises and know what to do if issues arise.
Why Comparable Sales Matter in a VA Appraisal
With a VA loan, the appraiser does more than inspect the property for safety, soundness and livability. They also determine the home's market value using recent sales of similar homes, known as comparable sales.
To establish that value, the VA uses what's called the sales comparison approach. The appraiser looks at what similar homes in the same market have actually sold for, not what sellers are asking, what the home cost to build or what income the property could generate.
The sales comparison approach mirrors actual buyer behavior, unlike cost-based or income-based valuation methods, which are rarely used in VA appraisals except in unusual circumstances.
Why does this matter? The VA loan amount is based on whichever is lower, the appraised value or the purchase price. A buyer can choose to cover any difference out of pocket, but the VA loan cannot exceed that lower figure.
What Qualifies as a Valid VA Comparable Sale?
Not all home sales can be used as VA home loan comparables. Appraisers must follow strict VA appraisal guidelines for comparables to ensure the value conclusion is credible and defensible.
VA guidelines also prefer comparable sales from within the last 6 months and generally no more than 12 months old.
Below is a high-level look at what comparable sales VA appraisers can and cannot use:
Acceptable Comps vs. Comps That Need a Closer Look
| Acceptable Comparable Sales | Comparable Sales That Require Additional Review |
|---|---|
| Similar style homes in the same market segment | Foreclosures or short sales (unless common locally) |
| Recent, closed arms-length transactions | Non-arm's-length transactions (family sales, transfers) |
| Properties with similar size, age, and utility | Homes with major condition differences |
| Sales reflecting typical buyer behavior | Incomplete or partially built new construction |
| Closed sales only | Active, pending, FSBO or unverified sales |
To be usable, sales comparables for a VA loan must be closed sales – not active listings, pending contracts or unverified transactions. While distressed sales, such as foreclosures, may sometimes be used, they must generally be justified as representative of the local market.
Other critical factors include:
- Proximity: Comps should be geographically close to the subject property whenever possible. Neighborhood similarity is key.
- Similarity: Homes should match the subject property in style, size, age and overall utility.
- Market segment: Comps must reflect the same competitive market, meaning the same type of buyer would consider both homes.
When differences exist, such as an extra bedroom, larger lot, garage or recent upgrades, the appraiser applies adjustments to account for those differences. These adjustments help align each comp with the subject property’s features.
What Happens When It’s Hard to Find Acceptable Comparables?
In a perfect world, every appraisal would include three nearly identical homes that sold last month on the same street. In reality, that’s often not possible.
Situations where an appraiser can’t find comparables are common in:
- Rural or low-density areas
- Neighborhoods with few recent sales
- Markets with rapidly rising prices
- Unique or custom-built homes
When acceptable VA loan comparables are limited, appraisers may need to use older sales, expand the geographic search area or apply larger adjustments. Each of these factors increases scrutiny and can weaken the overall reliability of the valuation.
In some cases, the lack of credible comps can even lead to difficulty getting appraisal approval. If no comparable sales are available, certain properties may be considered too risky under VA guidelines.
Working with a real estate agent experienced in VA loans can help. Specialized VA agents understand how comps are evaluated and may help identify stronger comparable sales or guide buyers toward properties more likely to appraise efficiently and successfully.
How Adjustments Work When Comps Don’t Match Perfectly
Rarely does a comparable sale match the subject property exactly. That’s why appraisers apply adjustments to reflect meaningful differences.
Common adjustment factors include:
- Square footage
- Number of bedrooms and bathrooms
- Garage or parking availability
- Lot size
- Renovations or upgrades
- Overall condition
Adjustments can be positive or negative. For example, if a comparable has an extra bedroom, the appraiser may deduct value from that sale to better align it with the subject home.
However, when comps require heavy adjustments, their reliability decreases. Large or numerous adjustments can signal that the comp isn’t truly comparable, which may weaken the appraisal’s support for the contract price.
What to Do When VA Comparable Sales Lower the Appraisal Value
Low VA appraisals often stem from limitations in comparable sales, not problems with the property itself. This is especially common in fast-moving markets or areas with few recent sales.
If the appraisal comes in below the purchase price, buyers and sellers still have options. It’s important not to assume something is “wrong” with the home. Instead, it means the available market data doesn’t support the agreed-upon price.
1. Review the Comparable Sales Used
Start by reviewing the comps in the appraisal report. Buyers and agents should look closely at:
- How recent the sales are
- How close they are geographically
- How similar they are in size, style and condition
- The size and number of adjustments applied
Identifying stronger or more relevant comps may justify further action.
2. Tidewater Initiative
Before finalizing a low value, VA appraisers may invoke the Tidewater Initiative. This gives the lender, real estate agent and borrower 48 hours to submit additional closed, relevant comparable sales for consideration.
This is often the best chance to influence value before the appraisal is completed.
3. Reconsideration of Value (ROV)
If the appraisal is already complete, borrowers can request a Reconsideration of Value (ROV). This involves submitting up to three stronger comparable sales, along with a brief explanation of why each comp is more appropriate.
If the new comps are more credible, the appraiser may revise the value.
4. Renegotiate the Purchase Price
When comps clearly support a different value, buyers and sellers may renegotiate. Sellers often agree because VA appraisals can also impact future buyers, especially if similar financing is likely.
If required repairs come up in the appraisal, buyers may have several ways to handle them as part of the broader negotiation.
How to Move Forward After Reviewing Your VA Appraisal
Comparable sales play the single biggest role in determining VA appraisal value. Understanding what makes a comp usable, how adjustments work, and why limited comps can affect value helps borrowers navigate this step with confidence.
When VA home loan comparables don’t support the price, borrowers aren’t out of options. Reviewing comps carefully, using Tidewater, requesting an ROV or renegotiating can keep a deal moving forward, even when the appraisal presents challenges.
Connect with a Veterans United VA loan expert or reach out to your loan team if you have any questions about the VA appraisal process.
How We Maintain Content Accuracy
Our mortgage experts continuously track industry trends, regulatory changes, and market conditions to keep our information accurate and relevant. We update our articles whenever new insights or updates become available to help you make informed homebuying and selling decisions.
Current Version
Oct 20, 2026
Written ByChris Birk
Reviewed ByTara Dometrorch
Updated with more detail on how comps shape your VA appraisal and added action steps. Content reviewed and fact-checked by team lead underwriter Tara Dometrorch.
Veterans United often cites authoritative third-party sources to provide context, verify claims, and ensure accuracy in our content. Our commitment to delivering clear, factual, and unbiased information guides every piece we publish. Learn more about our editorial standards and how we work to serve Veterans and military families with trust and transparency.
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