By Prerna Kapoor, CLHMS | REAL Brokerage | July 11, 2026
A seller I worked with in Aurora had her home under contract in about a week, a great outcome by any measure. Then the appraisal came back, and it wasn’t the value that was the problem. It was three items on the appraiser’s checklist: peeling paint on the exterior trim, a missing handrail on the basement stairs, and an outlet with exposed wiring in the garage. None of those would have shown up on a conventional loan’s appraisal. Her buyer was using an FHA loan, and FHA appraisals come with a checklist most sellers have never heard of until it lands in their inbox mid-contract.
FHA and VA Appraisals Aren’t Just About Value
On a conventional loan, the appraiser is there to answer one question: what is this home worth? FHA and VA appraisals ask a second question at the same time: does this home meet minimum standards for safety, soundness, and sanitation? HUD’s Single Family Housing Policy Handbook 4000.1 spells out FHA’s Minimum Property Requirements, and the VA maintains a similar standard for its loans. If the appraiser flags something, the loan cannot close until it’s fixed, no matter how strong the offer otherwise is.
The Repair Items That Show Up Most Often
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In my experience, the same handful of issues account for most FHA and VA repair requirements: peeling or chipping paint, especially on homes built before 1978 where lead-based paint rules apply; missing or loose handrails on stairs with three or more steps; exposed wiring or missing outlet covers; broken windows or window seals that no longer close properly; a roof the appraiser believes doesn’t have much useful life left; and a primary heat source that isn’t working or can’t adequately heat the home. On well and septic properties, common in parts of Douglas and Elbert County, the appraiser will also want to see a working septic system and a potable water test.
Who Pays and Who Decides
Repairs aren’t automatically the seller’s expense, they’re negotiated in the purchase contract like anything else. In practice, though, most Colorado FHA and VA contracts end up with the seller covering these items, because without the repair the loan simply cannot fund. Once the work is done, the appraiser typically has to make a follow-up visit to confirm it, usually for a $100 to $200 reinspection fee, before the lender will clear the loan to close.
How a Pre-Listing Inspection Avoids the Surprise
You won’t know your buyer’s loan type when you’re setting your listing photography schedule, but a growing share of strong Colorado offers this year are coming in VA or FHA financed, so it’s worth planning for either one. A pre-listing inspection before you go live will usually catch the cheap items, paint touch-ups, a $40 handrail, outlet covers, before they become a mid-contract scramble against a closing deadline. I’d rather my sellers fix a $150 problem on their own schedule than a $150 problem on the lender’s schedule.
What This Means for Your Timeline
Plan on FHA or VA required repairs adding one to three weeks if you need a contractor scheduled and a reinspection completed, and build that into your closing date conversation with your buyer’s agent early rather than discovering it two weeks before closing. If the repair list turns into a bigger negotiation, the same principles in my inspection repair negotiations guide apply just as well from the seller’s side of the table. And if your buyer is financing with one of these programs specifically, my VA loan guide and FHA loan guide are useful reading so you understand the process from their side too.
Quick answers
Do all buyers’ appraisals require repairs? No. Conventional loan appraisals are about value, not condition, and rarely require repairs unless there’s an obvious safety hazard.
Who has to pay for FHA or VA required repairs? It’s negotiable in the contract, but in practice sellers usually cover these items, since the loan can’t close without them.
Can a seller just refuse to make the repairs? Yes, but the buyer’s loan won’t close as-is, so the two sides have to renegotiate who pays, the buyer has to switch loan types, or the deal falls apart.
If you’re getting ready to list and want to walk through what an FHA or VA appraiser might flag on your specific home, I’m always happy to take a look with you, no pressure, no pitch.
Prerna Kapoor | REALTOR® | Luxury Home Specialist
REAL Brokerage | 720-949-5450 | info@prernakapoor.com
CLHMS • RENE • PSA • ABR | International Sterling Society Award Winner
Prerna specializes in residential real estate across Parker, Aurora, Lone Tree, Castle Pines,
Highlands Ranch, Cherry Creek, Greenwood Village, and Centennial. She speaks English, Japanese,
and Hindi.
