Veterans – no longer at a disadvantage…
When competing to purchase a home
Dear clients and friends,
Did you know that until very recently, our veterans were at a competitive disadvantage when purchasing homes here in the United States?
As you may recall, the NAR settlement goes into effect on August 17, and one of the terms of that settlement is that sellers no longer have to compensate whoever procures the buyer. That’s all well and good, except for our country’s veterans.
The VA loan, which is a special loan just for those who have served our country, prohibits veterans from paying any kind of closing costs, including compensating their own buyer agent. So, if the seller doesn’t have to compensate the buyer agent and the veteran isn’t allowed to compensate their own representation, how will that agent get paid? Specifically, why would anybody want to represent a veteran?
Well, the great news is that the Department of Veterans Affairs recently figured out this issue and has issued a temporary variance to this rule. Veterans can now, for the time being, compensate what is considered customary buyer-associated fees, which now includes compensating their buyer agents.
So, for those of you who are veterans and have served our country, thank you for your service. You were not forgotten by the Department of Veterans Affairs. Until a long-term resolution can be achieved—and that will probably be after the Department of Veterans Affairs understands how this new world works post-August 17—you are able to compensate your own buyer broker and be competitive in today’s market.