Essential Questions Veterans Should Ask Potential Real Estate Agents

As a veteran, it’s crucial to ensure that your real estate agent is familiar with the VA loan process and has a proven track record of successfully assisting other veterans. Here, we delve into the key questions you should ask potential real estate agents to ensure you’ve found a VA experienced real estate agent.

With changes from the National Association of Realtors and the VA allowing Veterans to pay for real estate agents for contracts executed on or after August 10th, we figured it was a good time to remind Veterans how to interview real estate agents! Find the VA Circular 26-24-14 here.

We’ve made a list of questions that you may want to ask, why these questions matter, and what their responses should be before you enter into a buyer’s agency agreement with an agent.

The format of the following article is as follows:

1. Question To Ask

• • Why this question is important.
    • Their answer should include: What their answer should include, a baseline response.

There may be some follow-up advice or commentary following the answer, similar to this sentence. Please refer to the Essential VA Loan Terms and FAQ for any questions, and feel free to reach out to us.

Understanding Their Experience with Veterans

When choosing a real estate agent as a veteran, their experience working with other veterans is invaluable. This experience can significantly influence the smoothness of your transaction and the understanding of specific needs related to VA loans.

1. How many veterans have you worked with? (Overall and in the last 12 months)

• • This question helps gauge the agent’s familiarity with VA loans and their unique aspects. An agent experienced in working with veterans will likely have a better understanding of your specific needs and concerns.
    • Their answer should include: A solid baseline is 12 in a year. However, less than 12 does not disqualify a willing professional to serve you.

Their answer to this question is not a guarantee or qualification of their comfort with VA loans; however, it is a good indicator as to what they may or may not have seen working with other VA loans.

2. Share your most recent experience navigating a VA loan transaction?

• • Notice how they speak about the transaction, are they excited for their client? Did they go above and beyond to ensure the best transaction for their client? Do they remember the specifics of the last VA loan they helped?
    • Their answers that include: A clear explanation of each step of the process, educational moments for their clients, moments where they learned or led through uncertainty, overcoming obstacles, and negotiation with all parties.

Key VA Loan Concepts

The Tidewater Process

The tidewater process is a VA loan procedure that aims to give fair warning when an appraisal is going to come in low. Understanding this process is crucial for navigating potential appraisal issues.

1. Can you explain the tidewater process?

• • An agent knowledgeable about the Tidewater process can take proactive steps to address appraisal issues, potentially saving the deal. You’ll want an agent versed in how to handle these situations to ensure as stress free of a transaction as possible.
    • Their answer should include: Tidewater is when an appraiser alerts the requestor’s team (the buyer) that their appraisal value is below the agreed upon purchase price.

2. How do you respond to a notice of tidewater?

• • An agent that has worked through a tidewater notification before will know exactly what is necessary to supply the appraiser with.
    • Their answer should include: The requestor of the appraisal will be able to supply the appraiser with relevant comparable homes in the area, therefore agents will need to know the timeline, the required criteria for applicable comparable homes, and work quickly to supply these.

3. Please Explain An NOV

• • Mentioning that the property’s estimated value and minimum property requirements are included in this notice can indicate a strong understanding of the VA loan process.
    • Their answer should include: Once the VA appraisal is complete, the Veteran will receive the notice of value (NOV) stating the property’s estimated value and, if applicable, a list of items requiring repair to meet the VA’s minimum property requirements.

4. How does an ROV work?

• • The ROV process is often shied away from by loan officers and agents alike. An understanding of this process can indicate a well versed agent.
    • Their answer should include: ROV or Reconsideration of Value is an optional process after the notice of value (NOV) has been issued. If the price remains unchanged from the tidewater value, the Veteran may request this.The Staff Appraisal Review (SAR) will research market data and provide a recommendation. This is a second opportunity to provide additional market data.

5. What are the most common MPR issues in our area?

5b. Share an experience that you successfully negotiated to overcome those issues?

• • An agent should have a plan to negotiate repairs by working with your loan officer to make sure everything is taken care of, correctly. Properties financed with a VA loan must meet VA MPR’s. Find MPR’s in Chapter 12 of the 26-7 (VA Handbook). For quick access, click here.
    • Answer: Common Minimum Property Requirements (MPR’s) can vary by location; however, at Be My Neighbor Mortgage we’ve commonly noticed safety items such as chipping paint, carpet that has exposed tacks, broken windows, and/or railings being required for 3+ stair steps.

Reviews and Learning Willingness: Feedback from Fellow Veterans

Reviews from other veterans who have used VA loans can provide insights into the agent’s expertise and client service levels. It’s essential that your real estate agent is willing to go beyond their basic duties to understand and leverage the VA loan benefits fully.

1. Can I see reviews from veterans who used their VA loan with you?

• • Reviews can indicate an agent’s success rate and client satisfaction, particularly regarding the complexities of VA loans.
    • Do the reviews have positive notes about working through any obstacles, tidewater, or an ROV? Are there multiple reviews from VA clients?

2. What support system do you have in place to complete this transaction?

3. How do you stay up to date on the most recent changes for VA loans?

For questions 2 & 3:

Do they belong to any specialty groups like Vetted VA for Professionals? (read more below)
Are they familiar with the VA Circulars?
Have they completed any specialized VA course work?

Final Thoughts for Finding a VA Experienced Real Estate Agent

Choosing the right real estate agent is a critical step in utilizing your VA loan benefits effectively. By asking these pointed questions, you can better assess whether an agent will meet your needs as a veteran.

Remember, the goal is to find an agent who not only understands the VA loan process but is also committed to ensuring you maximize this benefit.

VettedVA, best described by Christopher Griffith in this video, is a great place to find resources as a veteran or active duty member starting the home buying process.

Essential VA Loan Terms

• ROV (Reconsideration of Value): This is used to challenge a low appraisal in a VA loan.
• NOV (Notice of Value): This document states the value of the property as determined by the VA appraiser.
• MPRs (Minimum Property Requirements): These are the health, safety, and acceptability standards that properties must meet to qualify for a VA loan.