Definition

For VA loan guaranty purposes, the “reasonable value” of a property is that figure which represents the amount a reputable and qualified appraiser, unaffected by personal interest, bias or prejudice, would recommend to a prospective purchaser as a proper price or cost in the light of prevailing conditions. 

“Reasonable” vs. “Market” Value

VA considers reasonable value and market value to be synonymous.  VA’s definition of market value is consistent with that used by Fannie Mae, Freddie Mac and major appraisal organizations.