The question is regarding paragraph #3 on the FHA/VA addendum which says "Seller shall make any and all appraisal required repairs, provided that the cost does not exceed $____." Let's suppose that a buyer puts an amount of $500 in this space. During the Due Diligence period the Buyer requests for some repairs to be done that amount to $500 and the Seller agrees to complete those repairs. The appraisal report comes in after that agreement and lists some items that must be repaired totaling around $250. Is the Seller required to repair those items?

The Seller is required to repair those appraisal items because they total less than the $500 agreed upon. The Due Diligence repairs were not appraisal repairs, so what the Seller spent on those repairs is irrelevant in this scenario.