VA Appraisal vs. Inspection: What Michigan Buyers Should Know

Using a VA loan in North Muskegon? You will hear two terms early and often: VA appraisal and home inspection. They sound similar, but they do very different jobs in your purchase. Knowing the difference can save you time, money, and stress as you move toward closing.

In this guide, you’ll learn what each one checks, who orders and pays, how they affect your deal, and how local North Muskegon factors like basements, heating, and flood risk can show up in reports. You will also get a practical timeline and checklist to keep your purchase on track. Let’s dive in.

VA appraisal: purpose and process

A VA appraisal serves the Department of Veterans Affairs and your lender. Its main goals are to confirm the home’s market value and to verify the property meets the VA’s Minimum Property Requirements, often called MPRs.

The lender orders the appraisal as part of underwriting. You, the buyer, typically pay the fee. After the visit and analysis, the appraiser issues a Notice of Value, sometimes called a Certificate of Reasonable Value, which states the VA’s opinion of value and lists any MPR repairs required before closing.

What the appraiser looks for

A VA appraiser is not performing a full diagnostic inspection. The focus is on value and obvious health, safety, and structural items. Examples that can trigger MPR repairs include:

• Non-working heating systems during Michigan winters.
• Significant roof leaks or damage that threatens the interior.
• Open or unsafe electrical conditions.
• Major foundation or structural failures.
• Active water in crawlspaces or basements that threatens habitability.

Cosmetic defects usually do not trigger MPR repairs. The appraiser also evaluates comparable sales to support value.

Timeline and results to expect

Turnaround can range from several days to a few weeks, depending on workload and property complexity. If the NOV comes in below your contract price, the lender may not approve the higher amount. You can renegotiate the price, pay the difference in cash, or work with your lender on a reconsideration of value by providing additional evidence. If the NOV lists MPR repairs, the seller typically must complete them before closing or follow lender- and VA-approved escrow procedures. A re-inspection confirms completion.

Home inspection: purpose and process

A home inspection is your tool for understanding the home’s condition. You hire the inspector, usually within your contingency window after offer acceptance, and you pay the fee.

Your inspector conducts a comprehensive visual evaluation of major systems and components, such as the roof, foundation, HVAC, plumbing, electrical, interior, and exterior. The final report helps you plan repairs, negotiate credits or price adjustments, and gauge future costs.

What a standard inspection covers

An inspection is broader and deeper than an appraisal. It may call out safety issues, maintenance needs, and observed code discrepancies. Inspectors typically do not set value. In West Michigan, common findings include:

• Basement moisture, efflorescence, sump pump issues, and foundation cracks.
• Aging furnaces or heat pumps and deferred HVAC maintenance.
• Outdated wiring, insufficient amperage, or non-grounded outlets in older homes.
• Older plumbing materials, including galvanized pipes and potential lead service lines.
• Roof wear from lake-effect weather, flashing issues, and ice dam concerns.

Optional specialty tests

Some issues are outside a standard inspection and require add-ons. In parts of Michigan, radon testing is recommended. If the property uses a private well or septic, testing and inspections are important. Older sewer lines may benefit from a sewer scope. Ask your inspector about credentials, insurance, and whether they offer these services.

VA MPRs vs inspection findings

It helps to think of the VA appraisal and the inspection as two different lenses on the same home:

• VA appraisal checks value and basic safety. It flags issues that threaten habitability or pose clear health and safety risks.
• Home inspection scans for overall condition. It identifies both major and minor issues, including items that are not MPR failures but still matter to you.

You might see scenarios like these:

• The inspection notes a roof nearing the end of its life. The VA appraiser may not require repairs if it still protects the home. You can still negotiate with the seller.
• The VA appraiser flags a non-functional furnace in winter. That is an MPR issue and must be fixed before closing.

North Muskegon factors that can affect both

Our lakeshore climate and local housing stock can influence what shows up in both reports. Here is what to watch for in North Muskegon and nearby lakeside areas:

• High water table and basements. Active water in a basement or crawlspace can lead to MPR concerns for habitability. Inspections often detail moisture sources, sump pump status, and grading.
• Proximity to Muskegon Lake and Lake Michigan. Some properties may lie in FEMA flood zones, which can affect loan and insurance requirements. Flood elevation and mitigation steps matter for long-term costs.
• Cold-weather heating. The VA appraiser will note if the heat works adequately. Your inspection will comment on age, service records, and expected life of the system.
• Roofing and siding wear. Lake-effect snow and wind can speed up wear. An inspector will discuss condition and remaining life; an appraiser will call out obvious leaks.
• Older homes and systems. Older wiring, plumbing, and lead paint risk may show on inspection reports. Only clear safety hazards tend to trigger VA MPRs.
• Wells and septic systems. These must be sanitary and functioning for VA purposes. Inspections and testing provide deeper insight into condition and maintenance needs.

Who orders, who pays, and when

Understanding the sequence helps you avoid delays and surprises.

• Appraisal. Ordered by your lender; you pay the fee. It supports loan approval and checks MPRs.
• Inspection. Ordered by you; you pay the fee. It helps you evaluate condition and negotiate repairs or credits.

Most VA transactions follow this path:

1. Offer accepted.
2. You schedule your home inspection and any specialty tests during your contingency period, often 5 to 10 days.
3. Your lender orders the VA appraisal during underwriting.
4. You use the inspection report to negotiate repairs, credits, or a price adjustment.
5. The appraiser issues the NOV. If repairs are required, the seller completes them or follows approved escrow procedures.
6. Re-inspection confirms completion and your loan moves to closing.

If the appraisal comes in low or lists repairs

A low NOV or required repairs can feel like a setback, but you have options.

• NOV below contract price. You can renegotiate the price, pay the difference in cash, request a reconsideration of value with additional comparable sales, or cancel if your contingency allows.
• Required MPR repairs. The seller usually makes the repairs before closing. In limited cases, an escrow solution may be approved by your lender and the VA. Cosmetic items are not typically required.
• Re-inspection. After repairs, the appraiser or designated inspector verifies completion so your loan can proceed.

Common scenarios and how to respond

Use these playbooks to stay ahead of issues common in North Muskegon.

• Leaky basement with musty odors. Ask for contractor estimates and negotiate repairs or credits. It may not always be an MPR failure unless habitability is at risk, but it still affects value to you.
• Heating not working during winter. Expect the VA appraiser to require a fix as an MPR item. Get service records and confirm the system runs properly before closing.
• Property in a flood zone. Lenders often require flood insurance, which affects monthly costs and resale considerations. Factor this into your budget and decision-making.

Buyer checklist: North Muskegon VA purchases

Stay organized with this quick list.

• Hire a qualified inspector. Ask about certifications, insurance, sample reports, and whether they offer radon, sewer scope, well-water, or septic testing.
• Confirm floodplain status if near water. Budget for any required flood insurance and ask for flood elevation documents if available.
• Gather records from the seller. Request roof age, HVAC service history, sump pump maintenance, septic pumping and inspections, and permits for major work.
• Discuss MPR hot spots with your lender. Ask what repairs often trigger MPRs locally and how long the appraisal timeline is right now.
• Plan your negotiation strategy. Use the inspection report to request repairs or credits for items that matter to you, even if they are not MPR failures.

Pro tips to keep your closing on track

A few simple steps can prevent delays.

• Schedule the inspection quickly. The sooner you have the report, the more time you have to negotiate and address issues.
• Prioritize MPR items first. If repairs are needed, get them moving so the appraiser can re-check and clear the file.
• Consider specialty tests early. If radon, sewer, well, or septic issues are a concern, adding time up front can save days later.
• Keep paperwork handy. Service invoices, permits, and contractor receipts can help both your inspector and the appraiser.

If you want a local, veteran-savvy guide for your VA purchase, we are here to help. Schedule a consultation with William Leiter to talk through your plan and next steps.

FAQs

What is the difference between a VA appraisal and a home inspection?

• A VA appraisal confirms market value and checks basic safety through VA MPRs, while a home inspection provides a detailed condition report for your negotiations and future planning.

Who pays for the VA appraisal and the inspection in Michigan?

• Your lender orders the VA appraisal and you pay the fee; you also hire and pay the home inspector, usually during your contingency period.

What repairs does the VA usually require in cold climates like North Muskegon?

• Common MPR items include non-functional heating, significant roof leaks, major electrical hazards, structural failures, and active water that threatens habitability.

Do I still need a home inspection if I get a VA appraisal?

• Yes. An appraisal is not a full inspection; it will not identify many defects or maintenance needs that matter to you.

What happens if the Notice of Value is below the contract price?

• You can renegotiate, pay the difference in cash, request a reconsideration of value with better comps, or cancel if allowed by your contingency.

Can I close with VA-required repairs unfinished?

• Usually the seller completes MPR repairs before closing, though in limited cases your lender and the VA may approve an escrow arrangement with re-inspection.