The Borges Real Estate Team
Pasadena • Greater Los AngelesWhy Do Sellers Not Like VA Loans (And How to Win Anyway)?
Sellers worry about three things with VA loans: stricter appraisal requirements, perceived longer closing times, and the fear that VA loans fall through more often. Here's the truth-these concerns are largely outdated or overblown. With the right strategy, VA buyers can win against cash offers. I've helped clients do exactly that.
What Sellers Actually Worry About
Let's be honest about what's going through a seller's mind when they see "VA financing" on an offer. Understanding their concerns is the first step to overcoming them.
| Seller Concern | Their Fear | Reality |
|---|---|---|
| VA Appraisal Requirements | "The appraisal will kill the deal" | ⚠️ Manageable with strategy |
| Closing Timeline | "VA loans take forever" | ✓ We close in 15 days |
| Deal Fall-Through Rate | "VA buyers can't close" | ✗ Myth - Similar close rates |
| Repair Requirements | "I'll have to fix everything" | ⚠️ Buyer can commit to repairs |
Notice that two of the four major concerns are outright myths, and the other two are manageable with the right approach.
Let's talk strategy. Quick conversation could change everything.
Myth vs. Reality: VA Loan Closing Times
❌ The Myth
"VA loans take 60-90 days to close. Sellers can't wait that long."
✓ The Reality
With the right lending partners, we close VA loans in as few as 15 days-faster than most conventional loans.
The perception of slow VA closings comes from inexperienced lenders and unprepared applications-not the VA loan itself. We work with lending partners who specialize in fast, reliable VA closings. When we tell a listing agent "15-day close," the conversation changes immediately.
Industry average for VA loans is 45-50 days. We've closed in 15. When sellers see that timeline on your offer, the "VA loans are slow" objection disappears completely.
The VA Advantage Most Agents Don't Know Exists
Here's something that changes everything-and almost no agents understand it.
In California, the VA Amendatory Clause is federally required on every VA purchase contract. It states that the veteran is not obligated to complete the purchase if the appraised value comes in lower than the contract price.
Here's why this matters:
Even if you waive your appraisal contingency to appear more competitive against cash offers, the VA Amendatory Clause still protects you. It's federal law-it cannot be waived. You can walk away without losing your earnest money if the appraisal comes in low.
What This Means for Your Offer
| Strategy | How Sellers See It | Your Actual Risk |
|---|---|---|
| Waive appraisal contingency | ✓ "Strong, aggressive buyer" | ✓ Still protected by VA Amendatory Clause |
| Offer above asking | ✓ "Serious about winning" | ✓ Can still exit if appraisal doesn't support price |
| Short close timeline (15 days) | ✓ "Fast, reliable buyer" | ✓ Our lending partners actually deliver |
Most agents-even experienced ones-don't understand this distinction. They think waiving appraisal contingency means the buyer has no protection. With VA loans, that's simply not true.
This is how we help VA buyers compete with cash offers without taking on the risk that cash buyers accept.
Myth vs. Reality: VA Loans "Fall Through"
❌ The Myth
"VA loans have higher fall-through rates. It's too risky to accept one."
✓ The Reality
Industry data shows VA loans close at similar or better rates than conventional loans when properly prepared.
The key phrase is "properly prepared." VA loans require understanding the appraisal requirements upfront. When you work with an agent and lender who know VA loans, they close reliably and predictably.
Sellers don't hate VA loans-they've had bad experiences with unprepared VA buyers and uninformed agents. When you demonstrate competence, their resistance melts away.
The VA Appraisal: What's Actually Required
VA appraisals check for Minimum Property Requirements (MPRs)-basically, safety and habitability standards. Most issues are minor and fixable.
Common MPR Issues (and How to Handle Them)
| Issue | Typical Fix | Cost Range |
|---|---|---|
| Peeling paint (pre-1978 homes) | Scrape, prime, repaint affected areas | $200-$800 |
| Water heater not strapped | Install seismic straps | $50-$150 |
| Missing handrails | Install standard handrails | $100-$300 |
| Broken windows | Repair or replace glass | $100-$400 |
| Drywall holes | Patch and paint | $50-$200 |
Total for typical repairs? Often under $1,500. That's not a deal-killer-it's a conversation.
How to Win With a VA Loan
Here's the strategy that's worked for my VA clients-including beating cash offers in multiple-offer situations.
Get Fully Underwritten Pre-Approval
Not just pre-qualification. Full underwriting shows sellers your financing is rock solid. This is your credibility foundation.
Scout for Appraisal Concerns Before Offering
During your showing, look for obvious issues. Peeling paint? Water heater in garage? Note them-these are conversation starters, not deal-breakers.
Educate the Listing Agent
Many listing agents operate on outdated VA loan information. A quick, professional conversation about VA loan realities can shift their perception entirely.
Commit to Handle VA-Specific Repairs
In your offer, commit to addressing any VA appraisal findings in escrow-at your expense. This removes the seller's biggest objection.
Demonstrate Strength in Other Areas
Competitive earnest money. Flexible closing timeline. Clean offer with minimal contingencies. Show you're serious and easy to work with.
Proof It Works: Beating Cash Offers
This isn't theory. Here's what happened when we applied this strategy in a real multiple-offer situation.
The Situation: First-time homebuyer using VA financing. The property had visible issues that would trigger VA appraisal concerns. 14 other offers on the table, including multiple all-cash buyers.
The Strategy: We identified the appraisal concerns upfront, discussed them proactively with the listing agent, and committed to handling any VA-specific repairs in escrow. We educated the listing agent on VA loan timelines and reliability.
The Result: Marty won. The only VA offer beat cash because we removed the seller's concerns before they became objections.
He went above and beyond to help me navigate all the additional headaches required to get my Veteran loan approved, which made the process even easier for me. If you're looking for a knowledgeable, patient, and trustworthy real estate agent, I highly recommend Justin!
Ready to Win Like Marty Did?
Your VA loan is an advantage-if you have the right strategy.
Free VA strategy conversation • No pressure
When to Adjust Your Strategy
Honesty matters. Some situations require a different approach:
Properties with major structural issues • Sellers with extremely tight timelines (under 21 days) • Markets with 20+ offers where sellers won't consider any financing • Properties that genuinely won't pass VA appraisal
In these cases, we might explore VA renovation loans, negotiate seller concessions for repairs, or identify properties better suited to VA financing. The goal is always finding a path forward-not just saying "it won't work."
Stop Losing to Offers That Aren't Better-Just Different
Your VA benefit isn't a weakness. It's a $0-down advantage that just needs the right strategy. With $200M+ in career sales and 81 five-star reviews, I've helped VA buyers win homes that other agents said were impossible.
Call or Text (213) 262-5092Text works too • No obligation, no pressure
