Selling Your Home to a VA Buyer in New Jersey: What Sellers Should Know

Selling to a VA buyer works like most sales, with three differences: the home has to meet VA's minimum property requirements at the appraisal, the contract carries a VA escape clause tied to the appraised value, and VA caps seller concessions at 4% of the home's reasonable value. In New Jersey, VA also requires a wood-destroying insect report on every VA purchase, so plan for one.

I'm Dennis Mark Interdonato with The Dennis Mark Group. I represent sellers across Monmouth and Ocean County, and I'm a former New Jersey home builder and residential remodeler. Here's what a VA offer means for you, so you can judge it on the facts.

Is it hard to sell a house to someone with a VA loan?

Not when you know what's coming. The steps that are different all happen after you sign: the appraisal, any repairs VA requires, and the termite report. A seller who knows the home's condition before listing is ready for all three.

I tell people what they need to hear, not what they want to hear. If your house has a soft roof, a heating system on its last legs, or rot at the sills, those are the kinds of items a VA appraiser can write up, since VA's property requirements cover the roof, heating, and wood rot. Better to hear it from me in the living room than from the appraiser three weeks into the deal.

What does the VA appraisal mean for the seller?

According to VA.gov, a VA-approved appraiser checks the home against VA's minimum property requirements and gives an opinion of value. The Notice of Value lists any items that need repair before VA backs the loan. VA's Buyer's Guide says repairs are negotiable between buyer and seller up until closing.

The appraisal fee, $650 for a single-family home in New Jersey under VA's posted table, is on VA's list of costs buyer and seller can negotiate. Timing matters too. VA's posted turn time is 9 business days in most of New Jersey and 7 in Ocean County, under its table effective May 1, 2026. More on what the appraiser looks at in what a VA appraisal checks.

What does the VA escape clause mean for a seller?

VA's Buyer's Guide says every VA purchase contract has to include it. If the home appraises below the price, the buyer can walk away without losing the deposit, or choose to go ahead anyway. From your side, a low appraisal opens a negotiation:

• The buyer's agent can ask for a Reconsideration of Value with better sales data.
• You can lower the price to the appraised value, or meet somewhere in between.
• The buyer can pay the difference in cash.

Pricing from the sales, not from hope, is how you avoid the problem in the first place. Read what happens when a VA appraisal comes in low.

How much can a seller give a VA buyer?

Two different limits. VA.gov says it doesn't limit what a seller credits toward the buyer's closing costs, but it limits seller concessions to 4% of the home's reasonable value. Concessions include things like paying the buyer's VA funding fee or paying off their debt. The full breakdown is in the 4% rule for VA loans.

What can't a VA buyer pay for?

VA limits the fees a VA borrower can pay. The Buyer's Guide says that's reasonable and customary amounts for the fees VA itemizes, a 1% flat charge from the lender, and reasonable discount points. VA also allows the seller or any other party to pay fees for the buyer. The buyer's lender knows exactly which charges are on that list, so ask for it early and price it into your net.

How should you compare a VA offer with your other offers?

Line them up on the same terms: price, any credits requested, the appraisal and inspection terms, the closing date, and the strength of the buyer's loan approval. A VA offer at a strong price with a clean timeline can beat a higher number with more strings attached.

Who pays for the termite inspection on a VA sale in New Jersey?

VA's local requirements page lists New Jersey among the states where wood-destroying insect information is required statewide before VA issues the Notice of Value. Who pays for the report is negotiated in the contract. I'd rather you know it's coming than be surprised by it.

How do you get your home ready for a VA buyer?

The same way you get it ready for any buyer, with an eye on condition. I walk the house with a builder's eye before we list and give you a short list of what's worth fixing. A small, smart investment usually beats selling as-is. In one sale, under $15,000 in updates I picked and supervised led to a list price $30,000 higher and an offer $45,000 over list on day one.

Then we price it right from the start, because the first two weeks on the market set your price. Find out where you stand with a home value estimate.

Frequently Asked Questions

What are the downsides of a VA loan for a seller?

The extra steps are the appraisal's property requirements, possible repairs, the escape clause and the termite report. Each one is manageable when the home's condition and price are right going in.

Does the seller have to pay for VA repairs?

Not automatically. VA says repairs are negotiable between buyer and seller, up until closing. The repairs have to be done for the loan to close as written.

Should I accept a VA offer over a conventional one?

Compare the whole offer: price, credits, contingencies, timing and the buyer's approval. The loan type is one line, not the whole story.

Can a VA buyer skip the appraisal?

No. VA's Buyer's Guide calls the appraisal mandatory for purchase loans. It's how VA sets the reasonable value that the escape clause and the concession limit are measured against.

This is general information, not legal, tax or lending advice. Your attorney reviews the contract, and the buyer's lender confirms VA's requirements.

About the author

Dennis Mark Interdonato is a REALTOR® and Master CDRE® who leads The Dennis Mark Group at Keller Williams Realty Ocean Living in Point Pleasant, NJ, helping buyers and sellers throughout New Jersey make their next move, with Monmouth and Ocean County as home base. See how I work with military and VA buyers and sellers.

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• What will my home sell for?
• Essential upgrades that add value to a New Jersey home
• Have a question this didn't answer? Send it to Dennis Mark.