As a licensed real estate professional here on the beautiful Kitsap Peninsula in scenic Washington State, I have the privilege of serving a very large military community, comprised primarily of active-duty US Navy personnel and their dependents stationed at Naval Base Kitsap.
Given that fact, many of the Buyers and Sellers I represent are party to transactions that involve VA Financing. As a Navy veteran myself, and former submarine sailor, I have firsthand experience with the benefits of using a VA home loan. Our first two homes were purchased using VA Financing. It’s one of the few ‘Zero-Down‘ loan products still available in today’s lending market.
I take my roles and responsibilities as an agent very seriously, especially as it relates to representing my clients best interests. It’s not about me, or what’s in it for me, but what is best for my clients and helping them successfully achieve their home buying or selling goals.
One my tasks in a real estate transaction is anticipating any potential problems or pitfalls, and ensuring the entire process goes smoothly. This skill is acquired through an intimate understanding of the real estate business, maintaining clear lines of communication, and many years of experience as an agent.
Unfortunately, regardless of how hard I may try, there are times when certain circumstances are beyond my ability to influence or control. Such can be the case with VA Financing, and, in particular, VA Appraisals.
Many times, VA Home Buyers are under the false assumption that once the home/pest inspection is completed and associated repairs are negotiated with the Sellers, that things will progress rather smoothly until closing. However, even after you conduct the home inspection, the VA Appraiser may find additional problems (or ‘conditions’) that will need to resolved/repaired before the loan can be funded.
Case in point: In one of my recent VA transactions, my Sellers had a large cedar deck off the back of their house. At its highest point, the deck was 24 inches above ground level. The deck did not have any railings or handrails.
In our area, VA Appraisers use the WA State Building Code to determine allowable deck height before railings need to be installed. If a deck is 30 inches or more above ground level, then railings are required. Based on this, I counseled my Sellers not to install the railings.
After the Buyer’s Home Inspection was completed, the VA Appraiser conducted his analysis. The home came in at value, and there were NO conditions. Or so we thought…..
A week or so after the appraisal, some ‘salary-justifying’ bureaucrat in the VA Regional Office in Denver disapproved the appraisal, citing a health/safety issue. The VA Appraiser was told to amend the appraisal and insert a condition that now required for railings to be installed on the deck.
When we attempted to gain some clarification on the ruling, we received a very rude and abrupt response.
“If you want the loan to fund, install the railings, PERIOD!”
I wondered to myself – “At what point/height does a deck become a safety concern? Two inches above the ground? 10 inches? 30 inches?”
You would think the VA would use some kind of uniform standard to make consistent determinations in such instances.
Unfortunately, in this instance, the determination was simply the personal, subjective opinion of someone stuck in a cubicle in Denver as to what constitutes a safety/health issue.
Luckily, we moved on from there, and the transaction finally closed. But not before a lot of unwarranted stress and delays were added to the process.
Not all VA transactions are problematic, like this one. VA Home Loans are still one of the best lending products available for veterans and active-duty personnel. Still, it’s important for Buyers and Sellers to be aware of such potential difficulties.
Got any VA Loan or Appraisal horror stories? Feel free to share. The more consumers are aware of such things, the better prepared they’ll be!
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Rich Jacobson is a licensed real estate professional providing knowledgeable empowerment and relentless representation for his clients of residential properties and vacant land throughout all of Kitsap County WA and portions of Pierce, Mason, and Jefferson Counties. You can also find him at KitsapLife.com, ActiveRain, Crabbing in the Hood, Facebook, Twitter, or e-mail: kitsapagent@gmail.com
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Tags: Kitsap County WA real estate, naval base kitsap, va appraisals, va appraisers, va financing, va home loans, va transactions
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