VA loans are a great opportunity for realtors on both sides of a contract negotiation. These loans give the buyer more opportunities, which means sellers have a better chance of attracting motivated bidders. Although the VA requires various restrictions that will bring more paperwork and demand extra considerations, these requirements can actually help both the buyer and the agent in the long run. A minor inconvenience is no reason to overlook the many benefits of a VA loan.
Higher Home Standards
A huge benefit for realtors working with clients approved for VA loans is that they can examine better homes. The VA has very strict standards that homes must meet in order to qualify for the loan. Many of the VA’s safety upgrades are revealed during the official appraisal. This gives the buyers a lot of leverage during negotiations with the owners. VA loans are reliable, and traditional funding often falls apart at the last minute.
Sellers are motivated to sell, so if their buyers – who come with very reliable funding – can only go through with the process once a few, small upgrades are made, then they’ll usually agree. They may ask slightly more from the buyer, but careful negotiations can give the buyer an advantage. Any terms in the negotiation linked to funding carry more weight for both sides, which means both sides are willing to meet those terms. This benefits the buyers, the sellers, and the realtor or realtors involved.
A Larger Pool of Better-Funded Buyers
This point benefits both buyers’ and sellers’ agents. In today’s market, many potential buyers have the financial ability to pay a mortgage and maintain a home, but they cannot gather the thousands of dollars needed for a down payment. VA loans allow these buyers to purchase a home without waiting another two or three decades. This gives sellers’ agents a better range of buyers to compete for their clients’ properties. It also gives buyers’ agents more potential clients who are ready to do more than just look.
Since buyers don’t have to pay a down payment, they often have a wider budget. This gives financial wiggle room and lends clients the ability to consider slightly more expensive properties. Naturally, this is better for buyers’ agents in particular, but it can also help sellers and their agents. For example, if a buyer is particularly motivated to purchase a property, but he has competition, he can bid higher. The only restriction is the appraisal estimate.
The VA is for veterans, and apart from the benefits described above, accepting VA contracts is about supporting our troops. These loans support the economy while simultaneously helping servicemen and their families find homes. Realtors representing both parties enjoy huge advantages, such as reliably-funded clients and more financial flexibility. Conforming the VA’s procedures and filling out some extra paperwork is well worth the effort. VA loans help buyers, sellers, and real estate agents alike.