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"I don't take VA!" said the listing agent

By Andrea Bedard

Real Estate Agent with Thompson Company, REALTORS® 240.593.2860 MD594797

May 14, 2013 12:22 PM

Fort Meade
"Sorry but I won't take a VA" was the first thing the listing agent said to me when I was trying to schedule a showing appointment for her listing in Columbia, MD. ???? Um. OK. At this point in time, I'm just trying to look at it.

Quite honestly, that comment rubbed me the wrong way - as a REALTOR® and as a military spouse. The eligibility for a VA loan is earned and many pay a dear price for it. I take great pride in helping military families who PCS to Fort Meade or WRNMMC Bethesda with their Real Estate needs and always encourage that they at least consider a VA loan as one of their options.

Now I know VA financing has some minimum property requirements that other loan programs may not have. But, I've never found that to be a problem. I do not have a VA loan horror story to tell. During my 9 years as a REALTOR® in Montgomery and Howard County, MD I have not had one bad experience with a VA transaction. Not one. *knocking on wood* FHA on the other hand ....

Perhaps I've been lucky. Or perhaps I've only worked with knowledgeable and experienced loan officers and counseled my military buyers correctly beforehand. Perhaps that's why my VA loan transactions have gone pretty smoothly.

The only obstacle I've ever encountered were the listing agents ... "sorry but I won't take VA". Why? My buyer could be making a dream offer. He is ready, willing and able - you could have a Pending sign on your listing tomorrow!

Maybe said listing agent just had a really bad experience in the past. But does one rotten apple really spoil the whole crop?

I'm taking a wild guess here ... considering that the listing agent is also the owner and the property is a flip .. something is up. There was no peeling paint, all appliances were in place, no holes in the walls, no broken windows, all railings in place, no mold ... I am not a home inspector nor an appraiser however.

Perhaps I missed something but the one thing I saw very clearly was the red flag.

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Mike Cooper, Broker VA,WV

Cornerstone Business Group Inc - Winchester, VA

Your Neighborhood Real Estate Sales Pro

I have had that a time or two. It has normally been related to issues they didn't want to repair. I would be appalled otherwise.

May 15, 2013 11:32 AM

Gary Woltal

Keller Williams Realty - Flower Mound, TX

Assoc. Broker Realtor SFR Dallas Ft. Worth

Andrea, I have heard that same line from a listing agent, and I was stunned. If they get their price, the terms with VA are very workable. GREAT featured post... I also see where the listing agent makes the decisions not talking to the seller, SHOCKING.

May 15, 2013 11:32 AM

Joni Bailey

101 Main St. Realty - Huntsville, TX

Your Huntsville / Lake Livingston Area REALTOR®

I certainly hope that the agent was also the owner. Why else would the agent determine what a seller would accept as far as a nonexistent offer was concerned. The seller is the only one that can decide that. That's absurd!

May 15, 2013 12:13 PM

Andrea Bedard

Thompson Company, REALTORS® 240.593.2860 - Silver Spring, MD

Fluent in Real Estate & German, M.A. ABR ASP CIPS

You know it Bridget and, of course, I agree with you. There was nothing in the property that alarmed me, thus the red flag. I would much rather see the red, white & blue. Her comment just ticked me off .. btw, I hadn't even disclosed what type of loan my buyer is approved for!

Hi David, she didn't stop us from looking at the property. It was more like an FYI, I don't take VA so if that's your buyer's financing, don't even bother. The listing agent is also the owner. The house is close to Fort Meade, like Brenda said, she's shooting herself in her own foot.

Hi Noah, well, since she's also the owner of the property, I guess she is free to choose to lose.

Hi Gerard, she's definitely minimizing her pool of potential buyers. Considering that it has been on the market for 6 weeks - which is rather long in our seller's market - I'm really wondering what is really going on!

Hi Brenda, nothing in the property jumped out at me as a potential problem. Soooo, I can't help but feel that she is hiding something .. red flag!

Hi Eve, military should be a protected class because this is absurd! My buyer has no interest in the property - even if it met all his criteria for the same reasons you mentioned.

I agree Sheila. Kinda wish I knew exactly what though ..

Hi Cindy, that just absolutely makes no sense to me, to lose money because the buyer's financing is VA?? What?! Good for your buyers!

Hi Elizabeth, occasionally I see remarks that "the property won't pass VA". I appreciate that disclosure and know not to waste our time. In this case, however, I didn't see anything that could potentially be in violation of the minimum property requirements. It just ticked me off. There is really no excuse - which makes me wonder what exactly is she hiding?

Hi Melissa, the listing agent is the seller. The remark came immediately after I asked to show the property - I didn't even disclose my buyer's financing!

Hi Ann, I suppose as the seller she can choose to lose. We don't see too many cash deals around here besides investments/fixer uppers. We also do not have that choice in our listing agreements, I am glad we don't. VA loans have a bad rep for no reason. I don't get why .. my fastest turn around for an appraisal was 48 hours, it was a VA! I've had much more difficulties with FHA appraisals, ie. a roof had to be certified because the gutter was lose.

Hi Mike, hence the red flag! I'm willing to bet there are no known defects disclosed on the Property Disclosure/Disclaimer!

Hi Gary, that is just wrong. What happened to the duty to present any and all offers? I have not heard any major problems with a VA loan (hopefully I'm not jinxing it now) and really don't understand that attitude at all.

She is also the seller Joni. And requested a showing feedback from me today.. perhaps I should just send her the link to this blog post? :-)

May 15, 2013 12:55 PM

Rebecca Gaujot, Realtor®

Lewisburg, WV

Lewisburg WV, the go to agent for all real estate

Hi Andrea, congrats on this feature...the owner is cutting off her nose to spite her face...as my mom use to say :)

May 15, 2013 12:57 PM

Karen Anne Stone

New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX

Fort Worth Real Estate

Andrea, I would not be surprised if this Realtor/owner was a long-time agent... and had in the long-ago past had some negative dealings with VA loans.

Many, many years ago... that was typical. I mean in the 1960's and 70's. If this Realtor was in the business back then, her reaction is understandable... but still, it is completely unfair. Things have changed SO MUCH since then.

VA financing back then was nothing like it is now. Usually back then... the problem was the property. And also, back then... the appraiser did so much more than simply appraise. They were like inspectors. They came up with a list... a required list. And then you'd call them when the list was finished, and they would come back out and inspect that list. And on, and on.

Many sales went smoothly, but many were an absolute nightmare. Back then.

Sounds like she needs some "slap therapy." And... perhaps what you hinted at... with it being "hers" and a flip also... that something else is going on.

May 15, 2013 01:05 PM

Praful Thakkar

LAER Realty Partners - Burlington, MA

Metro Boston Homes For Sale

Andrea, given a choice, I'd prefer VA over FHA anytime! And though it may take little longer, VA loans are good!

May 15, 2013 02:12 PM

Richard Iarossi

Coldwell Banker Residential Brokerage - Crofton, MD

Crofton MD Real Estate, Annapolis MD Real Estate

Andrea,

That is so old school thinking, I can't believe that it still exists today. If the market conditions weren't so robust right now, I'm sure the answer would have been different.

Rich

May 15, 2013 04:28 PM

Christine Donovan

Donovan Blatt Realty - Costa Mesa, CA

Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Andrea - I have come across times when VA was not as welcome as a conventional loan.

May 15, 2013 04:34 PM

Aaron Hofmann

Atlanta Communities - Smyrna, GA

aka Mr. Smyrna Vinings

I would take it as a red flag if the agent is the owner. If they're not the owner, I would present the offer and they would legally be obligated to present to the seller, which at least gets you in consideration. But if they're the owner and flat out don't want a VA loan, it does make you wonder what they're hiding.

May 15, 2013 04:54 PM

Richard Arnold

Keller Williams Realty East Valley - Tempe, AZ

Realtor - Tempe, Chandler, Mesa, Gilbert, Phoenix

My parents are looking to use a VA loan for the third time! When I call a listing to check financing, I ask specifically for the Owner's attitude on VA loans. Sure it sucks to have doors closed and locked in our faces - and we can choose not to work with those Sellers, too.

US Military brats and families will certainly watch each others' backs!

May 15, 2013 05:00 PM

Andrew Mooers | 207.532.6573

MOOERS REALTY - Houlton, ME

Northern Maine Real Estate-Aroostook County Broker

Others in our industry we all work hard to give a good taste to the public means keep it professional. Make it happen and think of the buyer, seller, not others with different color blazers than your team wears. Git 'er dunnnn as Larry reminds.

May 15, 2013 06:24 PM

Donald Reich

Madison Specs - New Rochelle, NY

Cost Segregation Specialist

Andrea, this is a HUGE red flag. A VA mortgage is just as good as any other mortgage. What is she going to say next, "I don't take FHA mortgages"?

May 15, 2013 08:08 PM

Gabrielle Kamahele Rhind

KGC Properties LLC, Tucson Property Management & Real Estate - Tucson, AZ

Broker/Owner

GOOD MORNING ANDREA! I just canceled a listing agreement with a Seller who didn't take VA, didn't want FHA, and was OK with conventional on his terms. Sometimes the red flag isn't the property, but a Seller who is just arrogant and doesn't want to sell.

May 15, 2013 10:04 PM

Scott Godzyk

Godzyk Real Estate Services - Manchester, NH

One of the Manchester NH's area Leading Agents

Most often it is sellers and agents who are not educated with what the loan type is, what it entails or even requires. What this agent said is not only a shame but a disgrace. I think the key in your story is the owner of the home is also the listing agent. You know what they say about the professional who represents themselves.... in their haste for a quick sale they may be trying to bypass the "flip" rule or avoid a detailed inspection or appraisal. Either way your buyer should stay clear and every one should learn the agents name to educate them on the value of the sacrifice or service men and woman and their families make and have made to keep us safe and free.

May 15, 2013 10:41 PM

MaryKay Shumway

The Kellstrom Ray Agency, Inc. (Est. 1948) - Sister Bay, WI

Door County Wisconsin's Real Estate Expert

While some loans may be more difficult (much more difficult)......All money is green, right?

May 15, 2013 10:51 PM

Marc McMaster

RE/MAX Centre Realty - State College, PA

Putting my clients before myself

I also do a lot of VA transactions and being a veteran myself I'm kind of insulted that the agent wouldn't take a VA loan.

May 16, 2013 12:28 AM

Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES

Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL

Florida Waterfront and Country Club Living

Andrea, I just had an offer rejected as well because buyer wanted to use VA financing. Sellers didn't want to pay for any closing cost that might be incurred and that VA does not allow buyers to pay and they didn't "like" 100% financing programs. Having said that, I don't think the agent should be the one to decide whether they "take" VA... they are not the ones who own the property!

May 16, 2013 11:12 AM

Andrea Bedard

Thompson Company, REALTORS® 240.593.2860 - Silver Spring, MD

Fluent in Real Estate & German, M.A. ABR ASP CIPS

Thank you Rebecca. Yes, indeed she is!

Hi Ms. Karen Anne, it's possible but I doubt it. My gut feeling is that there is something not quite right, something that should be disclosed ...

Me, too, Praful, me, too!

Hi Rich, interestingly enough this home has been on the market for 6 weeks! You would think with almost everything else under contract within days that any offer would be welcome.

Hi Christine, I have come across it a few times but never once was it stated to me in such a manner. I found that offensive.

Hi Aaron, the red flag came up because the agent is also the owner. Otherwise I would have asked to present the offer myself .. if my client were interested that is.

Hi Rich, we were planning on using VA for our next purchase and I'm preparing myself for some rejection. It's really too bad though. The reason we want to finance with a VA is not because we don't have a down payment or need all our closing costs paid.. it is because my husband risked his life to earn this benefit and he earned the right to use it. I'm guessing it's the same for your parents!

Andrew? I'm sorry, I didn't quite get your comment.

Hi Donald, I don't know. But she'll continue to have a hard time selling with that attitude.

Hi Gabrielle, wow! And good for you for walking away from it! I agree, of course.

I think you hit the nail on the head Scott. My buyer wasn't interested in the house ... he saw the red flag as clearly as I did.

You would think MaryKay!

That's how I felt Marc!

Hi Silvia, in my case the agent was also the seller. Unfortunately, I do think if an agent doesn't like VA, they'll communicate that to the seller and influence their decision - they could be losing out on a great offer though!

I have to add that I've also had very positive experiences. In one case the seller chose my clients' offer over others because they were active-duty!

May 17, 2013 07:14 AM

Diane M. Phillips Realtor 443-286-4365

Frankly Real Estate Inc. - Manchester, MD

Specializing in Carroll Co., MD

Andrea ~ I think your red flag is right on. That's crazy and a disgraceful way to treat our military.

Jun 04, 2013 04:07 AM