It was a big week for the U.S.A. – We celebrated Independence Day on Wednesday, and then just this am, the United States women’s national soccer team won the World Cup securing back to back titles! Congrats ladies!
But for me, this week was overshadowed by yet another example of a Veteran getting a “raw” deal in the housing marketplace.
Because nearly all of my first-hand experience is with the successes (and bumps in the road) with our own clients, I don’t get a chance to prove my theories about what’s happening in the market with Veterans working with other agents & lenders.
THIS WEEK was another glaring example of the overall marketplace being stacked AGAINST Veterans. I still can’t stand these examples, which is why I keep “fighting the fight.”
So…an old friend who has been an agent for 20 years sends me this text the day before July 4th. (The irony didn’t escape me.)
“Hey man! I just got a VA offer on a listing of mine in San Clemente. They are asking the seller to pay closing costs. I’m going to assume that we can put a cap on that amount. Is there anything the seller is required to pay for with VA? Regarding the VA appraisal/inspection I know they scrutinize roof leaks and condition of the roof. Our roof is old. I’m thinking we try to cap any required VA repairs in a counter as well. Is that allowed and is there anything else I should be cautious of with a VA buyer? Thanks for your help !”
I’ve known this agent for about 15 years, and he’s a very bright and accomplished real estate pro.
Yet, his knowledge of how to “handle” a VA offer was limited at best. I called him to help (and suggested he support the Veteran.)
BUT HERE’S THE REAL RUB…I asked my friend if he had other offers, and he said yes. I asked what he liked about the VA offer, and he replied, “Well, its $50,000 more than the conventional offers!”
OMG. (The listing was for $900,000.) In the first round of negotiations, the VA buyer and his agent were willing to out-bid their conventional competition by more than 10% in price!!! OUCH!!!
I have often said, that (without our help) the only REAL LEVER that a VA buyer has when competing against other (likely more appealing conventional of cash offers) IS PRICE. That’s right…what will get the seller’s attention? Pay more. Dang…this gets me so FRUSTRATED.
I’ve seen this before first-hand several times, usually when a potential client calls, and they are too far into a transaction for us to get involved. Veterans are offering too much to try and secure an accepted offer.
It’s so sad to me.
It’s WHY we’re here…
I’m going to keep “fighting the fight” to help our community get the right home (at the right price).
Our team of Veterans helping Veterans, utilizing our set of unique and powerful programs will win this fight.
It’s a very worthy fight to be engaged in…
Peter
