10 Questions VA Buyers Should Ask a Realtor Before Buying a Home

Not every real estate agent is experienced with VA loans. Many close only a handful of VA transactions each year, and some have never handled one at all.

That can create problems for military buyers. VA loans have unique appraisal standards, fee rules, and underwriting requirements that can catch inexperienced agents off guard. Small mistakes can lead to delays, unexpected costs, or lost deals.

The best agents for military families are those who work with VA buyers regularly and understand the challenges that often accompany PCS moves, appraisal repairs, and competitive markets.

When you’re vetting real estate agents, here are ten critical questions you should consider asking them before you commit.

The term “Realtor” is a trademark of the National Association of Realtors. Agents who join a local NAR-affiliated association — and whose brokers are also members — can use the designation. They are also bound by NAR’s Code of Ethics.

That’s a very valuable proposition. The Code of Ethics provides vital consumer protections that are tremendously beneficial to buyers and sellers who aren’t real estate professionals.

You also want to find out how experienced the agent is, specifically with VA transactions. Ask what share of the agent’s closings in the past year involved military or veteran buyers and how many VA transactions they’ve closed over the last year or so.

An agent who answers “occasionally” or “we work with everyone” doesn’t treat military families and veterans as their core market. We suggest finding someone who does.

You, as the buyer, must sign a formal buyer-broker agreement before any agent can show you an MLS-listed home. The agreement specifies the agent’s compensation, who pays it, and the scope of services to be provided.

Two things to know before you sign:

• Rates are negotiable. Most charge 2 to 3 percent of the purchase price, but flat-fee and tiered structures are also available.
• Buyer-agent compensation no longer appears on the MLS. Seller offers to pay the buyer’s agent are now communicated separately.

Tip: Ask the agent for a draft of the agreement before you sign. Confirm what happens if the seller covers part or all of the fee.

Agents are expected to be fully transparent about their compensation. And you deserve to know exactly how agent commissions work. Don’t work with agents who aren’t willing to discuss how they get paid.

More Like This: Want to know more about the ideal order of operations when it comes to buying a home? Check out our quick guide to the homebuying process!

Ask about communication preferences and expected response times.

Military buyers frequently work across time zones, around field exercises, and often operate under PCS deadlines. Be sure to communicate closely about what the agent needs from you to successfully complete your home purchase. But also communicate clearly if you will be in the field, deployed, or otherwise unable to respond to correspondence or sign documents right away.

Agents and broker firms who are experienced with VA loans will understand and be willing to accommodate you, though not all sellers will!

Also, clarify whether the realtor prefers to be contacted by phone, text, fax, or email. Agents with heavy case loads and who do a lot of business will want to do most communication in writing. It’s much easier to keep track of.

Don’t ask whether the agent has “worked with VA buyers before.” That’s too vague. Ask for a specific number. An agent who closed 15 VA purchases in the past 12 months probably knows the program pretty well, whereas an agent who closed one or two will probably be learning on your transaction.

A lot of times, that learning will be at your expense, in the form of delays, lost opportunities, and potentially the forfeiture of deposits.

More Like This: A real estate agent or Realtor familiar with the VA loan appraisal process will identify homes that may have issues that need to be addressed before a VA loan is approved. They can save you time, money, and energy in the long run.

Ask for numbers, not impressions. The local MLS will show median days on market, list-to-sale price ratios, and the share of homes selling above asking.

An experienced VA-focused agent should also know how VA offers are landing locally. That is, which builders accept them without negotiation, which neighborhoods see resistance, and how recent VA appraisals compare to actual contract prices.

Watch for sagging ceilings, cracked foundations, uneven floors, water staining at the ceiling-wall joint, and grading that slopes toward the house.

Some of those warnings are cosmetic. But others can mean tens of thousands of dollars in repairs.

An agent with real VA-specific experience will go further and tell you which issues will trigger a minimum property requirements (MPR) repair requirement from the VA. These issues can include:

• Chipping paint on a pre-1978 home
• Exposed wiring
• Roofs that need immediate repair or replacement.
• Standing water in crawlspaces and basements

Catching those on a walk-through saves you from paying for an appraisal that comes back “conditional” on repairs the seller may refuse to make. And from the delays, which may be even more expensive in the long run.

The average number of days on the market in your new locale is a critical indicator, especially for military families who are often under tight PCS deadlines and who need to close transactions quickly.

Generally, a “days-on-market” figure of two weeks indicates a competitive market. You may even need to make above-market offers to get your bid approved.

Longer “days on market numbers” indicate you may have more bargaining power when it comes to price, repairs, and seller concessions.

In a 14-day market, the right house will probably be under contract within two weeks of listing, so you can’t wait for your house-hunting trip to see it before you make an offer. To succeed in highly competitive markets, you’ll need an agent willing to do video walk-throughs and write offers while you’re still at your current duty station.

In a 60-day market, listings usually sit on the market for much longer. In these buyer’s markets, you can possibly plan a house-hunting trip, tour multiple homes, and negotiate without a ton of pressure.

The purchase price is only one part of the financial whole. Asking your Realtor about upfront costs helps you prepare your budget.

As the buyer, you may be responsible for closing costs, earnest money deposits, inspection fees, appraisal fees, and moving expenses. You should also ask your agent or mortgage representative about the VA funding fee you will pay.

Your agent can help you understand which costs are typical in your area and when they will be due.

Having this conversation can also open the door to negotiation strategies. For example, in some less competitive markets, you may be able to request seller concessions to help cover certain closing costs. A knowledgeable Realtor can help you structure your offer within your budget while remaining competitive.

A VA appraisal is not a home inspection

The VA appraiser is primarily concerned with habitability and safety issues. They’ll focus on safety, soundness, and sanitation. A home inspection will evaluate items such as heating and air conditioning, water heaters, chimney flues, and the dozens of other systems common in homes today.

Always order a separate home inspection. Depending on location, also consider:

• Termite (wood-destroying organism) (often required by the VA in much of the Southeast and Gulf states)
• Septic system inspections on private systems
• Well inspection and water quality test on private wells
• Radon inspections in certain high-radon regions

An agent who regularly closes VA loans will know which inspections the local VA appraiser typically requires, which sellers often cover as a concession, and which can trigger repair negotiations.

A low appraisal isn’t the end of the deal. In practice, it’s often a starting point for a fresh round of negotiations.

As a VA home buyer, you typically have four options:

1. Negotiate the seller down to the appraised value.
2. Pay the difference in cash.
3. Split the gap with the seller.
4. Request a Reconsideration of Value, the VA’s formal process for challenging an appraisal when comparable sales were overlooked

Agents with experience in VA loans will likely already have local comps on hand, ready to support a higher appraisal and help push the deal through. If they aren’t prepared in advance, they’ll have a hard time meeting the deadline.

AHRN connects military buyers and veterans with agents and lenders who serve the military community as their primary focus. Search listings and find military-specialist professionals near your next duty station.