The Real Estate Browser Volume 10, Issue 5 | Page 38

38 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 10 Number 5
toric homes are off-limits, but that might not
be the case.
“The VA’s rules about homes and what
they will and won’t approve is probably one of
the most argued-about things I’ve seen,” says
Bobby Middleton, a VA-savvy Realtor® with
Texas Premier Realty in San Antonio. “I’ve
seen houses that were built in 1929 that didn’t
have a problem with the VA, and I’ve seen
new houses and you just knew the appraiser
wasn’t going to approve it.”
“I suggest to my clients to avoid HUD and
short sale properties,” adds Rob Racz, man-
aging broker for Windermere Real Estate in
Everett, WA. Many of these properties have
been damaged or fallen into disrepair, making
them unlikely to win approval for a VA loan.
If you really want an older home, look for one
that’s already been remodeled.
2. Work out repair requests with the seller
Even if you’re buying a newer home, you’ll
have to be on the lookout for potential prob-
lems. The need for a little updating in the
kitchen or a fresh coat of paint won’t mat-
ter much to a VA appraiser, who’s looking at
broad health, safety, and marketability issues.
But bigger issues can cause a problem with
your VA loan—and, subsequently, your offer.
“The lender is not going to loan you the
money to buy the house unless the repair is
made,” Middleton says.
The problem is the seller doesn’t have to
make any repairs. The seller could decide
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to just walk away from the deal and wait for
another buyer. Your best option is to have
your Realtor work with the seller’s to reach an
agreement. Often, the problem simply boils
down to a lack of understanding. The seller
might not realize that as a VA buyer, you
need to have the repair done to get your loan
approved.
This is where choosing a Realtor who
understands the VA loan process comes in.
“If you’ve got a buyer’s agent that can
explain all that to the listing agent, nine times
out of 10 we’ll get the repair done,” Middleton
says.
Buyers can also look to pay for repairs
themselves if the seller won’t budge.
3. Do market analysis before making an offer
Making an offer with a fair price is key to
getting that offer accepted. But what’s consid-
ered “fair”?
Striking the right note here can be chal-
lenging. You could lowball the seller in hopes
of saving some money, but you’d risk driv-
ing the seller away. On the other hand, if you
offer more than the VA is willing to approve,
you’ll have to either come up with the cash to
cover the difference or risk losing out on the
home.
You’ll need to do a little homework to see
what the home might appraise for before you
make the offer—and that can get tricky.