Realtor: VA home loan change will help vets

Carson City real estate agent and Sierra Nevada Realtors President Robert Bartshe believes an upcoming policy change in the U.S. Department of Veteran Affairs could help veterans in Nevada trying to buy a home.

“Historically, the Department of Veteran Affairs exempted qualified veterans utilizing their VA-guaranteed home loan benefit from being able to pay certain fees in a transaction. One of those fees was compensation to their real estate agent,” Bartshe said. “So, to help ensure that veterans have the representation they need and deserve during the largest purchase of their lives, the VA has modified its policy to allow for veteran home buyers to pay reasonable and customary real estate fees as it relates to the purchase of their home. This is a temporary measure that will help protect veteran buyers and could be modified as the VA deems necessary.”

In a June 11 news release, VA officials said the change will be effective Aug. 10. VA officials also pointed to a recent settlement in a class-action lawsuit involving the National Association of Realtors that requires the NAR to change brokerage fee rules.

“The full impact of the settlement is not yet certain because the real estate market is still adjusting, but there may be an increased expectation that home buyers will pay for their own buyer-broker fees,” according to the VA. “In VA’s program, it has been common practice for sellers to pay for the veteran’s buyer-broker fees.”

In March, the NAR sent a letter to the VA pushing for the policy change.

“In situations where no offer of compensation is offered from a seller, VA buyers are immediately at a disadvantage, potentially forcing them to forego professional representation, lose a property in an already limited inventory, choose a different loan product or exit the market entirely,” reads the letter.

Bartshe maintained the change at the VA will “open up opportunities for veteran homebuyers to have the same opportunity and inventory available to them as a civilian buyer.”

“We do not anticipate that this policy change will have a direct impact on the real estate market in Northern Nevada specifically,” Bartshe said. “The only effect that we anticipate this change will have is widening opportunities for veteran home buyers to consider all home inventory available, regardless if the seller or listing agent is offering buyer-broker compensation.”

According to Nevada Department of Veteran Services, there were an estimated 219,698 veterans in Nevada as of Sept. 7, 2022, making up approximately 7 percent of the state population.

Information on VA home programs is online: https://www.va.gov/housing-assistance/.