Key Takeaways:
- Many veterans are finding it difficult to buy a home in today’s highly competitive real estate market.
- In many cases, FHA and VA loans aren’t accepted in multi-offer situations—but they do offer some benefits to sellers.
- It’s crucial to create a level playing field when selling your home, and you can always contact Linda Craft & Team at 919-235-0007 for advice.
What Sellers Can Do to Help Veterans in a Competitive Market
It’s no secret that Raleigh’s real estate market keeps soaring to new heights—but many buyers feel left out. Veterans in particular have had a harder time finding homes, especially if they plan on using a VA or FHA loan. So if you’re selling a home, you’ll want to be fair to all of your potential buyers, regardless of their financing. Here’s a quick rundown on what FHA and VA loans mean for Triangle sellers.
FHA and VA loans now make up a tiny percentage of financing
According to the National Association of Realtors (NAR), conventional loans now account for 74% of mortgages attained by buyers. That’s a decrease of around 10% over the last few years. In fact, during June of 2021, FHA and VA loans made up just 18% of total financing. This unprecedented shift could be due to a hyper-competitive market, particularly in the Raleigh area.
These types of loans often require more contingencies that can’t be waived
Both VA and FHA loans are speciality programs backed by the federal government. They offer affordable down payment options, as well as low interest rates for approved buyers. According to the Department of Veterans Affairs, nearly 90% of VA-backed homes are purchased without a down payment.
While these types of loans offer some pretty amazing benefits for buyers, they do come with more restrictions. In today’s market, it’s not uncommon for buyers to waive almost all contingencies, which isn’t possible with FHA or VA loans. More often than not, this means all-cash offers and conventional loans are more attractive contenders for sellers in a bidding war.
Sellers can make a level playing field for all buyers
As a seller, it’s important to consider every offer in front of you, regardless of loan type. If you’re selecting an offer due to a lack of contingencies, keep in mind that it doesn’t always mean the offer is what’s best for you.
Buyers who can’t waive specific contingencies may adjust other terms in their offer to make it more appealing to sellers. This may depend on several factors, including their loan type and location, but a motivated buyer and their agent will do everything they can to present an offer that’s as appealing to you as possible.
Ultimately, you need to sit down with your agent and carefully examine every offer. Just because an offer is over your asking price and free of contingencies doesn’t mean it’s the right fit. Who knows—a VA or FHA buyer might be the best option for your situation!
Work with the Triangle’s Top Real Estate Team
Whether you’re a veteran buyer or looking to sell your home for top dollar, you can trust Linda Craft & Team to get the job done right. We’d be honored to put our three decades of experience to work for you here in the Raleigh area! Give us a call at 919-235-0007 to take the next step—we look forward to hearing from you soon!