Knowing how to handle inspections and appraisals will help avoid delays when selling your home to a VA buyer.
When selling your home, receiving an offer from a buyer using a VA loan can be a great opportunity. The VA loan program is an excellent benefit for veterans, offering favorable terms that help them secure homeownership. However, as a seller, you should be aware of a few crucial details to ensure a smooth transaction. Here’s what you need to know:
1. Pest Inspections. VA loans have strict requirements regarding pest inspections. For instance, if a pest inspector identifies areas where the house’s structure is in contact with the soil or where there is potential for wood to ground contact, this may be flagged as a “conducive condition” for termites. The VA typically requires these issues to be resolved before the loan can be approved. Common examples include wood spacers between a house slab and the driveway or bushes and soil in close contact with the house’s foundation. Addressing these concerns proactively can prevent delays in your sale process.
“Understanding VA loans can streamline your selling process.”
2. Property condition and appraisals. The condition of the property is another area where the VA is particularly stringent. Any damage to the siding or other structural issues will be closely scrutinized during the VA appraisal. Additionally, VA appraisers are more selective in their use of comparable properties (comps) when determining the home’s value. If they cannot find sufficient comps to support the contract price, they may invoke the Tidewater Initiative.
3. Understanding the Tidewater Initiative. The Tidewater Initiative allows the seller or listing agent to provide additional comparable sales data if the VA appraiser believes the property may not meet the contract value. This initiative is named after the Tidewater region of Virginia, where the program was first tested. Being prepared to respond quickly with accurate data can help keep the transaction on track.
While VA loans have specific requirements that may differ from conventional loans, they are an outstanding program designed to benefit our veterans. As a seller, understanding these requirements and preparing your property accordingly can ensure a smoother transaction. Knowing what to expect when selling your home to a VA buyer will help you navigate the journey with confidence. If you’re considering selling your home or have any questions, call us at (512) 587-4050 or email [email protected] for personalized advice. I look forward to helping you!