VA Inspector didn't enter home to inspect home purchase

[Adam Soyak]

My wife (a realtor) has a client that is a VA buyer. They have a home under contract for purchase and chose to do a VA inspection only in lieu doing both a home inspection and a VA inspection, for cost savings and to make their offer more attractive. The selling agent just notified my wife that the VA inspector only walked around the house then left quickly. He didn't enter the home or provide any kind of inspection report. Just stated "no repairs needed" with the VA appraisal. The mortgage broker told the buyer that it is out of his hands once it goes to underwriting, and it is was it is as far as VA inspection goes, but has had this issue before. The buyers obviously have concerns because they thought they were getting some type of home inspection with the VA appraisal option. Is there any recourse for the buyer if something does show up after they move into the home? Is the VA responsible for protentional repairs? Thank you in advance!

[Lin Hiley]

A VA appraisal is performed by an appraiser, not a VA inspector. The appraiser would be an approved member of the VA panel of appraisers. The purpose and intent of a VA appraiser's visit is to inspect the home to asses its condition and amenities to the degree needed to value it, and to also make sure that it meets VA's minimum property requirements.

The most common reasons a house would not meet the VA minimum requirements are peeling paint in homes built prior to 1978, and missing handrails. An appraisal inspection is NOT similar to or intended to serve as a home inspection. The appraiser is not expected to test components (this, however, would be part of an FHA appraisal inspection).

It this case, the VA appraiser did not identify any faults with the property that would put it out of conformance with VA's minimum property requirements.

It sounds to me like the buyers were not properly informed about the purpose and scope of a VA appraisal. Once VA receives and reviews the appraisal, it issues a "notice of value", in which I'm reasonably certain that it expressly states that the VA is not guaranteeing the condition of the house. VA encourages its buyers to obtain a home inspection. VA guarantees the loan, not the property condition.