A home appraisal is one of the final and most critical steps before closing on a mortgage. It’s how the lender confirms the home’s value to make sure they’re not lending more than it’s worth.
But sometimes, appraisals don’t go smoothly — and when issues arise, they can delay closing, reduce loan amounts, or require costly reinspections.
Let’s walk through why appraisals can cause issues, which programs are most affected, and how to prepare so your deal moves forward smoothly.
What Is a Home Appraisal?
A home appraisal is a professional, third-party estimate of a property’s market value. The appraiser compares recent nearby sales (“comps”) and evaluates the home’s size, condition, features, and location.
Appraisals are required for almost every loan, including:
- FHA, VA, and USDA loans
- Conventional loans
- Refinances and cash-out refinances
Use the Home Affordability Calculator to estimate your maximum purchase price before the appraisal stage, or check your potential monthly costs with the Monthly Payment Calculator.
Why Appraisals Become an Issue
Appraisal issues typically fall into three categories:
- Value issues — the home appraises for less than the purchase price.
- Condition or safety issues — the appraiser notes repairs required before the loan can close.
- Compliance issues — missing permits, code violations, or outdated systems.
While value issues can be negotiated, condition issues almost always require a reinspection after repairs are made — adding time and cost.
30 Common Issues That Trigger a Reinspection
Here are the most frequent reasons appraisers call for repairs and reinspections, along with which loan types see them most often.
| # | Common Appraisal Issue | Most Common Loan Type(s) | Why It’s an Issue |
|---|---|---|---|
| 1 | Peeling or chipped paint (especially pre-1978 homes) | FHA, VA, USDA | Potential lead hazard |
| 2 | Missing or broken handrails | FHA, VA | Safety requirement |
| 3 | Exposed electrical wiring | FHA, VA, Conventional | Electrical safety |
| 4 | Non-functional HVAC or heater | FHA, VA | Property must be “safe, sound, and sanitary” |
| 5 | Missing carbon monoxide or smoke detectors | FHA, VA, Conventional | Required safety item |
| 6 | Roof damage or leaks | FHA, VA, USDA | Structural concern |
| 7 | Active roof leaks or stains on ceiling | FHA, VA | Evidence of ongoing damage |
| 8 | Water heater missing earthquake straps or relief valve | FHA, VA | Health & safety |
| 9 | Missing appliances (stove, range, etc.) | FHA, USDA | Minimum property standards |
| 10 | Plumbing leaks under sinks or in bathrooms | FHA, VA | Habitability concern |
| 11 | Water damage or mold | FHA, VA | Air quality concern |
| 12 | Non-functioning windows or missing panes | FHA, VA | Safety and energy efficiency |
| 13 | Cracked or broken glass | FHA, VA | Safety hazard |
| 14 | Termite damage or wood rot | FHA, VA | Structural issue |
| 15 | Missing flooring or exposed subfloor | FHA, VA | Trip hazard |
| 16 | Missing flooring transition strips | FHA | Safety and finishing requirement |
| 17 | Missing siding or exterior covering | FHA, VA | Exposure to elements |
| 18 | Holes in walls or ceilings | FHA, VA | Health/safety |
| 19 | Gutters detached or damaged | FHA, Conventional | Drainage concern |
| 20 | Standing water near foundation | FHA, USDA | Possible drainage or foundation issue |
| 21 | Cracks in foundation or uneven settling | FHA, VA | Structural concern |
| 22 | Broken stairs or loose steps | FHA, VA | Safety hazard |
| 23 | Missing stairway handrails | FHA, VA | Fall hazard |
| 24 | Unsafe or missing deck railings | FHA, VA | Required for elevated surfaces |
| 25 | Detached garage or structure damage | FHA, VA | Structural integrity issue |
| 26 | Inoperative electrical outlets or lights | FHA, VA | Habitability concern |
| 27 | Incomplete renovations | FHA, Conventional | Property must be move-in ready |
| 28 | Incomplete new construction items | FHA, VA | Needs Certificate of Occupancy |
| 29 | Septic or well issues | USDA, FHA, VA | Water and sanitation standard |
| 30 | Missing attic access or insulation | FHA, VA | Energy efficiency and safety |
Programs Most Affected by Appraisal Reinspections
- FHA Loans: The most stringent — requires the property to meet HUD’s “safe, sound, and sanitary” standards.
- VA Loans: Similar to FHA, but also includes habitability and veteran safety guidelines.
- USDA Loans: Often combine FHA-like repair standards with additional water/septic checks.
- Conventional Loans: More lenient but still require the home to be livable and marketable.
If you’re unsure which loan fits your goals and tolerance for property conditions, compare options with the Down Payment Calculator or the Buy Now vs Wait Calculator.
How to Get Ahead of Appraisal Issues
- Request a Pre-Listing Inspection (if selling).
Identify issues before listing or before the buyer’s appraiser arrives. - Address FHA/VA visible safety issues upfront.
Fix peeling paint, leaks, broken windows, and missing handrails before the appraiser visits. - Provide recent updates or receipts.
Show proof of roof repairs, HVAC service, or termite treatment — it may prevent repair calls. - Order a 4-Point and Wind Mitigation inspection.
These reports also reassure appraisers and insurance providers that systems are functional and safe. - Keep utilities on.
Appraisers can’t verify systems if the power or water is off — leading to delays. - Be proactive with insurance.
Choose adequate coverage (structure + belongings, not land), and review Home Insurance Basics to avoid surprises.
Example: Avoiding a Reinspection
Scenario:
A buyer using an FHA loan falls in love with a 1980s home. During appraisal, the appraiser flags:
- Missing handrails
- Minor roof leaks
- Water heater without earthquake straps
The buyer quickly fixes all three, and the appraiser performs a reinspection confirming compliance. Instead of delaying closing by weeks, the repairs were completed in 72 hours, and the loan closed on time.
✅ Tip: Most reinspections take 3–5 business days and cost between $150–$250, so prevent them early if possible.
Protect Your Investment
An appraisal doesn’t just determine your loan amount—it ensures the property is worth what you’re paying and safe to live in.
Understanding these common issues and addressing them early helps you save time, money, and stress before closing.
👉 If you’re planning to buy or refinance, request a Call Back today to review your property type, loan options, and appraisal preparation strategy.