Consider a Veteran

By
Real Estate Agent with KW Evolution - Topsfield, MA 92593-B

With the withdrawal of U.S, Military personnel happening more veterans will be entering the home buying market. Many times VA loans are not given due consideration because of VA-required contingencies. When we act as Seller Agents we really need to discuss the possibility of VA loans with our clients. VA loans are guaranteed by the United States government, are advantageous for veterans and their families BUT it seems many veterans making offers & utilizing the VA Home Loan are encountering resistance from sellers and maybe even seller agents. 

 

Home Sellers: There Is an Extra Way To Welcome Home Our Veterans

Home Sellers: There Is an Extra Way To Welcome Home Our Veterans

Some veterans are finding it difficult to obtain a home in today’s market. According to the National Association of Realtors (NAR):

“Conventional conforming mortgages (mortgages that conform to guidelines set by Fannie Mae and Freddie Mac), accounted for 74% of mortgages obtained by homebuyers in May 2021, an increase from about 65% during 2018 through 2019…The share of VA-guaranteed loans has also decreased to 7% in May 2021 from about 10% in past years.”

Recent data in the latest Origination Insight Report

from Ellie Mae sheds light on the continuation of this trend. Below, we can see just how small of a share of total financing VA loans made up in June of 2021, according to that Ellie Mae report:Home Sellers: There Is an Extra Way To Welcome Home Our Veterans | Keeping Current MattersThe drop in VA loan usage can be attributed to the difficulties veterans continue to face when buying a home. The NAR article elaborates:

“It is extremely difficult for FHA/VA buyers to get accepted in a multiple offer situation. They are on the bottom of the hierarchy.”

One contributing factor is that buyers with VA loans can’t waive certain contingencies. However, just because a certain contingency must be present for a particular buyer doesn’t mean that buyer’s offer shouldn’t be considered.

What Should Sellers Do To Help Create a Level Playing Field?

As a seller, it’s important to consider every offer in front of you regardless of loan type. If you’re selecting an offer because some contingencies are waived, keep in mind that it doesn’t always mean the offer is what’s best for you.

Buyers who can’t waive specific contingencies may adjust other terms in their offer to make it more appealing to sellers. This may depend on several factors, including their loan type and location, but a motivated buyer and their agent will do everything they can to present an offer that’s as appealing to you as possible.

Ultimately, you should make sure you take time to really understand the terms of their offer and see the big picture. Working with a driven buyer who’s motivated to purchase your house may provide a better opportunity for you to reach your overall best option and what’s most important to you.

Bottom Line

If you’re selling your house, work closely with your agent to make sure you understand the terms of all offers so you can give each one fair consideration, including those buyers using a VA loan. Our veterans sacrifice so much for our country. They’ve earned our gratitude and should have the same opportunity to obtain the home of their dreams.

Posted by

I pray that God our Father and the Lord Jesus Christ will be kind to you and bless you with peace

2 Thessalonians 1:2

 

Doug Dawes REALTOR®, AWREP, LMC

Broker Sales Associate

KELLER WILLIAMS REALTY - Topsfield/Newburyport

49 Main Street
Topsfield, MA 01983
 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

Comments (21)

Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Grant Schneider 

With so many buyers offering no contingencies the veteran's offer is often brushed aside.

Aug 04, 2021 06:48 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

The VA Loan is a fantastic opportunity for veterans who have valiantly served our country to get into a home. I do agree Doug, that sellers should seriously consider a closer look at these type of offers. I have never encountered a problem when my clients purchased with a VA Loan!

Aug 04, 2021 06:50 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Doug - as real estate professionals we can advise our clients to the advantages of certain terms of an offer but ultimately it's their decision.   Situations and circumstances definitely come into play in the industry.  And, of course, in real life.  

Aug 04, 2021 06:53 AM
Norma J. Elkins
Elite Realty Group - Morristown, TN
Realtor - Elkins Home Selling Team

I always try my best to help veterans the best way I can, it is the least I can do for sure.  Great article, thanks for sharing.  Have a wonderful day!

Aug 04, 2021 07:06 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Doug... I'm all about supporting our veterans... and actually just sold one of my listings over the weekend to a veteran.

Aug 04, 2021 08:13 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Doug, for YEARS I have worked with military families relocating in and relocating out of Denver.  I live close to Buckley AFB.

Aug 04, 2021 08:52 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Wanda Kubat-Nerdin - Wanda Can! 

Many veterans skip utilizing the VA loan due to bad advice or having a bad offer experience

Aug 05, 2021 09:23 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Michael Jacobs You are right on is your assessment

Aug 05, 2021 09:23 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

I'm sure we all do Norma J. Elkins and I appreciate that you do your best

Aug 05, 2021 09:25 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

OORAH!! Nina Hollander, Broker Congratulation on your sale and to a veteran. Out of curiosity, did they utilize a VA loan?

Aug 05, 2021 09:26 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Joan Cox 

That really gave you great access to the military family market

Aug 05, 2021 09:28 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Doug the market is changing in my area that means six months from now sellers will be happy to get a veteran's offer just give it time Endre

Aug 19, 2021 10:51 PM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Endre Barath, Jr. 

Glad to hear from you. This time around it is agents that are casting aspersions on VA loans. I do believe the worm will turn when we go into the cyclical downturn. 

Aug 20, 2021 08:11 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

I have used VA financing for hundreds of transactions. 

In my previous life I was a VA appraiser.

Aug 25, 2021 05:59 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Doug, your posts have been missed of late.  You must be busy selling all the homes!  

Aug 25, 2021 02:21 PM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hello Roy Kelley 

I didn't know that you were once a VA Appraiser. Thank you

Aug 26, 2021 10:13 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Joan Cox 

I am selling homes and attending to town and veteran issues but mostly mindset has been getting in my way with posts

Aug 26, 2021 10:14 AM
Joan Cox

Just miss you, but luckily get to "see you" in the Q & A Doug Dawes .

Aug 26, 2021 03:25 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Doug Dawes - Pray every single Veteran is eligible to get a VA Loan because if anyone deserves it more, it is the Veterans. I can't think of any other human being more worthy than those that served our country. 

Sep 10, 2021 11:07 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

I agree with you 100% Patricia Feager, MBA, CRS, GRI,MRP 

It's really too bad that so many agents think VA loans are a problem and convey that to their seller clients

Sep 10, 2021 11:24 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Doug Dawes - Any agent who thinks VA loans are a problem should step down and try another career. 

Sep 10, 2021 11:36 AM