VA appraisal repairs in Arizona — who actually pays?
Mike Certo ·
The VA appraisal includes a property condition review against Minimum Property Requirements (MPRs). When the appraiser flags issues, somebody has to fix them before the loan can close. Here's how the "who pays" conversation actually plays out in Arizona.
The default answer: it's negotiated
There's no automatic rule that says "seller pays." The repair responsibility comes from your purchase contract + the negotiation that happens after the appraisal report.
Three main paths emerge once MPR issues are flagged:
Path 1: Seller pays for repairs
Most common in buyer's markets. Seller agrees to fix the issues before close. They schedule + pay for the work. Common when: - The repair cost is small ($500-$3,000) - The seller doesn't want to lose the deal - The home has been on market for a while
Path 2: Buyer pays for repairs (with seller credit)
More common in seller's markets. Seller gives a credit at closing equivalent to the repair cost. Buyer handles repairs after close. Useful when: - The buyer wants control over the work quality - Seller doesn't want to delay close for repair scheduling - Repair is non-urgent (cosmetic-adjacent MPR issue)
Path 3: Buyer pays directly (no seller contribution)
Rare but happens in extremely competitive markets. Buyer eats the repair cost to keep the deal alive. Common when: - Buyer is desperate to close - Seller has multiple backup offers - Repair is small enough buyer doesn't want to negotiate
Path 4: Walk away
The amendatory clause. All VA contracts include language allowing the buyer to walk away without losing earnest money if the appraisal comes in low OR the property doesn't meet MPRs. Used when the repair issues are too expensive to negotiate around.
Common AZ MPR repair categories + typical costs
A/C system issues
Non-working A/C, undersized capacity, system at end of life. - Typical cost: $4,000-$15,000 for replacement (high end for full system replacement) - Typical negotiation: Seller pays or buys down credit equivalent
Termite damage / treatment
Active infestation or visible structural damage. - Typical cost: $300-$2,000 for treatment; $3K-$25K if structural repair needed - Typical negotiation: Seller responsibility (AZ disclosure laws favor buyer here)
Roof end-of-life
Asphalt shingle past expected lifespan in AZ. - Typical cost: $8,000-$20,000 for full re-roof - Typical negotiation: Often seller credit (large repair, complicated to schedule before close)
Defensible space (wildfire-prone areas)
Inadequate vegetation clearance around home. - Typical cost: $500-$3,000 for landscape clearing - Typical negotiation: Either party can handle quickly; often buyer credit
Electrical panel issues
Outdated Federal Pacific or Zinsco panels (insurance + safety concern). - Typical cost: $1,500-$3,000 for panel replacement - Typical negotiation: Seller typically pays due to safety concern
Pool issues (if home has pool)
Non-functional pump, cracked tile, missing safety fence. - Typical cost: $500-$5,000+ depending on issue - Typical negotiation: Varies; pool issues often resolved via seller credit + buyer post-close
Driveway erosion (AZ monsoon season specific)
Common in late July-September. Erosion at driveway-garage interface. - Typical cost: $200-$1,500 for grading repair - Typical negotiation: Easy to negotiate; usually small enough that buyer just handles
Plumbing leaks
Visible leaks at appraisal. - Typical cost: $200-$2,000 for typical repairs - Typical negotiation: Seller typically responsible
How to structure the negotiation
When MPR issues come up, the order of operations:
- Get the VA appraisal report ASAP — typically within 1-3 days of completion
- Get repair quotes from 2-3 contractors within 24-48 hours
- Submit a Repair Request Addendum to seller within your inspection window
- Negotiate based on the actual repair quotes, not the appraiser's estimate
- Document the agreement in writing — verbal "we'll handle it" doesn't bind anyone
What AZ listing agents are taught about VA repairs
Most AZ listing agents have heard that "VA appraisal demands are excessive." That's largely outdated. Current AZ VA appraisals flag MPR issues less than 10% of the time, and 80%+ of flagged issues are minor (under $2,000 to resolve).
Listing agents who counter your VA offer because of "appraisal risk" are working from old information. Your buyer's agent should push back on this.
When repairs make the deal not work
Sometimes the math doesn't work:
- Repair cost exceeds 5% of purchase price — seller usually can't or won't cover
- Property requires major structural work — typically these don't pass VA at all
- Seller refuses to negotiate — buyer's amendatory clause allows walk-away
In these cases, walk. The earnest money is refundable. Save your VA entitlement for the right home.
How Mike's process minimizes repair surprises
I review the listing photos + property history BEFORE you offer. If a home has obvious AC age issues, missing defensible space, or roof concerns, I'll flag them to your realtor with a recommended negotiation approach. Better to address it pre-offer than be surprised by the appraisal.
Call me at (480) 296-6513 for any AZ VA property questions.