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VA Loans - Even Experienced Agents are Clueless at Times

Old DogI am amazed how many times I come across and another agent who has been in the business for a long time (over 35 years in this case) and still does not seem to know what they are doing.

I had a somewhat frustrating one last week.  After showing my buyers many properties over a few days of looking we found the one they wanted.  The seller's agent informed me they were expecting two other offers.  We put together a clean offer with no extra contingencies.  They are using a VA loan and the lender is picking up the non-allowables, leaving no extra costs to the seller.  I sent a VA Addendum and a cover letter explaining that to their agent with our offer.  I also called him on the phone and went over it with him to be sure there were no misunderstandings.

The next day their agent called me. 

  • Other Agent: Because of the extra costs to the seller associated with the VA loan they decided to counter the other offer. 
  • Me: Excuse me?  What additional costs are you talking about?  Our lender is picking up all of the VA non-allowables.
  • Other Agent: Well that covers the extra lender fees, but what about the rest of the closing costs?
  • Me: What additional closing costs are you talking about?  It was clearly stated in writing and in our phone conversation that there would be no additional costs to the seller.
  • Other Agent:  My understanding is that the seller has to pay all escrow fees.
  • They were not willing to pick up those additional costs.
  • Me:  I am confused.  Did you not get in writing that the lender will be picking up all non-allowables, which includes the additional escrow fees?  Was I not perfectly clear in our phone conversation that there are no additional costs to the seller?
  • Other Agent: You may want to check on it again, because that is not how I understand VA loans work.
  • Me:  I the last 3 or 4 years I have been involved with many transactions with VA loans and not one time has a seller had to pay those fees.  Also this is the first time I had an agent misunderstand this.

That sad part is this agent works in close proximity to several military installations and I am sure he has probably done huge disservice to several of his clients in the past and may continue to do it in the future. 

I guess it is hard to teach an old dog sometimes.

 
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Randy L. Prothero - Hawaii REALTORĀ®
Century 21 Liberty Homes
Mililani, HI

Cell Phone: (808) 384-5645

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