Special offer

Are Sellers Freezing VA Buyers Out?

Real Estate Broker/Owner with AGORA Realty #271029

My buyer lost a multiple offer bid today because he is eligible for a VA loan. The listing agent/owner told me when I asked why he didn’t win, “The AV loan (yes, that’s what he said) is going to be difficult so we chose a Conventional loan”. I asked if the offer, itself, was competitive. He responded that it was, otherwise, a great offer.

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The offer was over list price but not high enough to where it wouldn’t appraise. We wrote for the transaction to close on a date the seller mentioned they'd like to close, the office that he wanted the EM to be held and asked what title company the seller wanted to use so that the offer didn’t need to be countered just to fill in blanks. I’ve contacted the lender to ask if my buyer has any other options because I predict (due to my market) that every home my buyer likes will be in a multiple offer situation. There isn’t another option for this buyer. Using his VA benefits, he can purchase a home without a down payment and no MI. I feel terrible because he lit up like a Christmas tree when he saw this house and requested to cancel the rest of the viewings in order to get started with the offer.

Don’t get me wrong…I’m glad this agent was honest with me because I may not ever have known the reason why my buyer didn’t get the home like the couple in this article who thought that every offer just fell short. I understand that we advise our sellers (or ourselves) to accept the offer we think is best but we should consider that our Veterans do not get nearly enough perks or resources for having served our country. These people deserve more respect than not being able to purchase a home because an agent assumes and advises that a VA Loan is more “difficult”. Instead, agents and sellers are freezing out VA (and FHA) buyers.

The plan: the lender will call the next listing agent we send an offer to, to present the program and answer any questions.

To learn more about how a VA loan benefits our country’s Veterans, click here.


Update 4/15.  I used this situation to educate the next listing agent, brought a competetive offer and we won!  My buyer is under contract!


William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

My experience with VA loans especially with the appraisers has not been very favorable

Apr 13, 2018 04:14 PM
Alyse "Aly" Sands

Hi William, I'm not saying that the VA experience is the best. I've had good and bad experiences. The purpose of the post is to show agents that there are people who are affected by our perceptions. I don't believe that the listing agent in the story has had any experience with VA loans. He's a new agent.

Apr 14, 2018 06:25 AM
Michele Cadogan 917-861-9166
Fillmore Real Estate 2990 Av U, Bklyn , NY 11229 - Brooklyn, NY
Licensed Real Estate Associate Broker -

What a shame -  In my experience sellers love the idea of helping  a VET secure a home.  We all know someone who has served and the sacrifices that they and their family undertake so whats the big deal of using a VA loan- at the end everyone is whole.

Apr 13, 2018 05:42 PM
Alyse "Aly" Sands

I had a seller a couple of years ago who took a VA over another loan just because it was a veteran but I brought that to light.  It's our job to explain the positives and negatives in assisting a client in making a decision.

Apr 14, 2018 06:27 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Aly, sadly, I have had many VA contracts rejected, and the Sellers took CV offers instead for fear of lender requirements.

Dec 21, 2018 06:35 AM