Selling your home to a VA buyer: the escape clause, the appraisal, and repairs
By James Sanson, REALTOR® · Updated October 2026
What changes when your buyer uses a VA loan, from the contract to the appraisal to the credits you can offer, with Arizona appraisal times and Luke AFB numbers.
A VA offer is an ordinary purchase offer with three VA rules attached. The contract has to carry the VA escape clause. A VA appraiser checks both the value and VA's minimum property requirements. And VA caps seller concessions at 4 percent of the home's reasonable value. The price, the repairs, and any credits are still yours to negotiate.
What is the VA escape clause?
It is a paragraph VA requires in every purchase contract for a VA-backed loan. If the value VA sets for the home comes in below the contract price, the buyer can cancel without losing the earnest money. The buyer can also choose to go ahead at the contract price. This is VA's wording:
"It is expressly agreed that, notwithstanding any other provisions of this contract, the purchaser shall not incur any penalty by forfeiture of earnest money or otherwise be obligated to complete the purchase of the property described herein, if the contract purchase price or cost exceeds the reasonable value of the property established by the Department of Veterans Affairs. The purchaser shall, however, have the privilege and option of proceeding with the consummation of this contract without regard to the amount of the reasonable value established by the Department of Veterans Affairs."
VA's homebuyer guide prints this clause with its legal basis, 38 U.S.C. 501 and 3703(c)(1).
What it means for you as the seller:
- It applies when the value comes in under the price. At or above the price, the clause does nothing, and the rest of your contract governs.
- It is not optional. The buyer's lender has to confirm it is in the contract before closing, or VA may not guarantee the loan.
- Your protection is the price. A list price that recent nearby sales support is your main protection against a short appraisal.
How long does a VA appraisal take in Arizona?
VA sets a deadline for its fee-panel appraisers in business days. The count starts the first business day after the appraiser is assigned, and weekends and federal holidays do not count. Under VA's table effective May 1, 2026:
| Where the home is | Bases nearby | Business days |
|---|---|---|
| Maricopa, Pima, and Pinal counties | Luke AFB, Davis-Monthan AFB | 6 |
| Cochise, Gila, and Santa Cruz counties | Fort Huachuca | 7 |
| Yuma, La Paz, Mohave, Coconino, Yavapai, Navajo, Apache, Graham, and Greenlee counties | MCAS Yuma, Yuma Proving Ground | 10 |
That is VA's standard for the appraiser, not for the whole loan, and the clock does not start until the buyer's lender orders the appraisal. When you review a VA offer, ask the buyer's agent when the lender will order it, and set the contract dates around your report date. The full table is on VA's appraisal fees and timeliness page (opens in a new tab).
What happens if the VA appraisal comes in below your price?
The buyer's lender receives VA's Notice of Value, which states the home's reasonable value and lists any repairs needed to meet VA's minimum property requirements. When the value is below the price, the sale can go one of four ways:
- A Reconsideration of Value. The buyer's lender can send VA recent sales that support a higher value. Your agent can give the buyer's agent those sales before the appraisal, so they are ready if they are needed.
- A lower price. You can reduce the price to the value, or meet the buyer partway.
- The buyer covers the gap. The buyer can pay the difference in cash at closing.
- The buyer cancels. Under the escape clause the buyer gets the earnest money back.
On a PCS clock, decide before you list how far you would move on price. Then a short appraisal is a quick decision instead of a second negotiation.
How many buyers near Luke AFB use VA loans?
In the seven West Valley cities near Luke, 923 of the 8,017 single-family resales that closed from September 29, 2025 to September 28, 2026 used new VA financing. That is 11.5 percent. The share ran from 7.0 percent in Glendale to 14.6 percent in Surprise, so a Surprise seller who turns away VA offers passes on about one buyer in seven. The median VA-financed resale closed at $445,000, against $429,000 for all resales. These are Arizona Regional MLS figures with builder-owned sales excluded; the city-by-city counts are on VA home sales near Luke AFB.
What repairs can a VA appraisal require?
The appraiser checks the home against VA's minimum property requirements, the basic standards a home must meet for VA to back the loan. Anything that falls short appears on the Notice of Value as a required repair, and it has to be resolved before VA will back the loan.
Who pays is negotiable. VA lets the buyer pay for repairs needed to meet its requirements, and it encourages buyers to negotiate those costs with the seller (VA Circular 26-22-11). Your choices are to make the repair before closing, to adjust the price so the buyer can pay for it, or to say no. A credit does not replace the work: the repair itself still has to be done, so ask the buyer's lender how VA will treat any credit before you agree to one.
A pre-listing inspection shows you problems before an appraiser does, while you still control the timing and the cost.
Is a termite inspection required on a VA loan in Arizona?
Yes. VA's local requirements page (opens in a new tab) lists Arizona among the states where wood-destroying insect information is required statewide. Under VA Circular 26-22-11 (June 15, 2022), the buyer may pay for the inspection when the Notice of Value calls for it, and for repairs the report finds that are needed to meet VA's requirements. VA encourages the buyer to negotiate both costs with the seller, and those repairs must be finished before VA will back the loan.
How much can you pay toward a VA buyer's costs?
VA does not limit what a seller pays toward the buyer's loan closing costs. It does limit seller concessions, to no more than 4 percent of the home's reasonable value, the figure on the Notice of Value. VA describes a concession as anything of value added to the sale at no added cost to the buyer, such as:
- paying the buyer's VA funding fee
- paying off a debt the buyer owes
- prepaying the buyer's hazard insurance
One payment VA has said does not count as a concession: your payment of the buyer's agent fee (VA Circular 26-24-14 (opens in a new tab)). Because the 4 percent is figured on the reasonable value, not the contract price, have the buyer's lender confirm the numbers before you agree to a credit.
Do you have to pay a VA buyer's agent?
Not unless you agree to it. Since August 17, 2024, MLS listings no longer carry an offer of pay to buyers' agents, so whether you contribute is part of each offer. Under VA's 2024 temporary variance, a VA buyer may pay their own agent in some cases, from their own funds rather than the loan. VA's circulars page, updated October 9, 2026, still lists that variance as valid until rescinded.
Whatever you agree to goes in writing. Your own listing commission is set in your written listing agreement; it is not set by law, and it is negotiable.
How do you compare a VA offer with other offers?
Compare offers on what you net and when you close, not on the loan type. For each offer, line up:
- the price, and what the offer says happens if the appraisal comes in short
- the credits and repairs it asks of you, and your net after them
- the close date against your report date
- the earnest money and the inspection period
- the lender's pre-approval letter, and when the lender will order the appraisal
The equity estimator shows your net for each offer. If your own loan is a VA loan, a buyer may be able to take it over instead of getting a new one; selling a house with a VA loan covers that route and what it means for your entitlement.
Frequently asked questions
What is the VA escape clause?
A paragraph VA requires in every purchase contract for a VA-backed loan. If the value VA sets comes in below the contract price, the buyer can cancel without losing the earnest money, or choose to go ahead at the contract price.
Can a VA buyer back out after the appraisal?
Yes, if the appraised value is below the contract price. Under the escape clause the buyer can cancel and get the earnest money back. If the value meets or beats the price, the escape clause does not apply, and the rest of the contract governs.
Does the seller have to make repairs for a VA appraisal?
No, but the repairs the Notice of Value lists must be done before VA will back the loan. VA lets the buyer pay for them and encourages the buyer to negotiate the cost with the seller.
How much can a seller pay on a VA loan?
VA does not limit seller payments toward the buyer's loan closing costs. It limits seller concessions, such as paying the buyer's funding fee or debts, to 4 percent of the home's reasonable value.
Is a termite inspection required for a VA loan in Arizona?
Yes. VA requires wood-destroying insect information statewide in Arizona. The buyer may pay for the inspection and for required repairs, and VA encourages the buyer to negotiate those costs with the seller.
How long does a VA appraisal take in Arizona?
VA's standard is 6 business days in Maricopa, Pima, and Pinal counties, 7 in Cochise, Gila, and Santa Cruz, and 10 in Yuma County and eight other counties, counted from the first business day after the appraiser is assigned.
Sources, read on October 14, 2026: VA's homebuyer guide (opens in a new tab) (April 2022) for the escape clause text, the Notice of Value, Reconsideration of Value, and the buyer's options when the value is short; VA funding fee and closing costs page (opens in a new tab) (updated October 5, 2026) for seller concessions; VA appraisal fees and timeliness table (effective May 1, 2026); VA local requirements page (updated July 11, 2025); VA Circulars 26-22-11 (June 15, 2022) and 26-24-14 (June 11, 2024; Change 1, August 5, 2024), shown on VA's circulars page (opens in a new tab) (updated October 9, 2026); the NAR settlement FAQs (opens in a new tab); and Arizona Regional MLS closed single-family resales, September 29, 2025 to September 28, 2026, builder-owned sales excluded. VA rules change; confirm each point with the buyer's lender before you rely on it. This page does not quote rates, payments, down payments, or loan terms.
Selling to a VA buyer on PCS orders?
Tell us your base, your report date, and the offer you are weighing. You will get a plan built around your orders and a call from James.