The Real Estate Commission vs. Sitzer/Burnett Lawsuit has caused commotion in the real estate industry. If you’re one of those who released a long, pent-up breath when the verdict was given in the class action Sitzer/Burnett lawsuit , you’re not alone. It’s not the end of the story, but it’s a good indication of where things are going. What does that mean for the real estate industry? And what does it mean for veterans trying to buy or sell a home? There’s a lot of negative hype out there, and I’d like to help you cut through it to the underlying reality and give you some answers to some of the burning questions you may have, so you understand how it may affect you. 1. Will veterans be unable to get funding through a VA real estate loan ? No, this will not affect a veteran’s ability to obtain a VA home loan . It just means that the Buyers Agent fee can no longer be advertised in the multiple listing service (MLS) by the listing agent. Commissions have always been negotiable and the industry norm has been that the Seller would pay 6% of the home’s sell price to their listing broker which is then split with the buyer’s agent at closing. This model helped Sellers to bring qualified buyers for their home and benefited Buyers as well because it allowed buyers to have representation by a licensed Realtor without having to pay for that expense out of pocket. In the past, Buyers have also at some point always signed a representation agreement with their Realtor agreeing to pay up to 3% commission. However, the Buyer never really had to pay those fees because most of the time that fee was already paid for by the Seller and even if the Buyers agent received less than 3% from the pre-negotiated amount in many cases the Realtor would not actually enforce the representation agreement to make their Buyer pay any additional fees out of pocket. This ruling changes this model in a way that it could leave both parties (Seller and Buyer) responsible for paying their own fees charged by their agent and will require a Buyers agent to enforce the representation agreement if the Seller chooses not to offer a commission because a Buyers agent will not be able to work for free and must get compensated for their work somehow. What does this mean for veterans? It is already challenging for a VA Buyer to compete with cash or conventional offers on a home because it is a government funded loan and has many rules that can make it a less attractive deal to a Seller. This is also why it is even more important for a Veteran to have good representation from an experienced VA Realtor who knows the ins and outs of the process. Now with this change, if a veteran does not have the funds available to pay the buyer’s agent’s fee in the event a Seller is not offering a commission on that home then it will put the Veteran at a bigger disadvantage because they won’t be able to be competitive enough or won’t be able to afford to buy that particular home. Currently, VA does not allow a Veteran to roll in commission costs into the loan so that could essentially leave a veteran without representation when this is a group that needs it the most. In many cases, Sellers will still be offering compensation to a Buyers Agent but again this just will not be advertised upfront. We are still waiting and hoping that the VA will be able to step in to make some changes to their regulations to ensure veterans are given the support they need and deserve. But for now, the best solution is to find a veteran-specialist real estate agent who understands your situation and can work with you to create solutions to get you into your dream home while covering their fees in compliance with the new regulations. 2. Will this make VA home loans too expensive for veterans to obtain? There’s a great deal of talk about how forcing veterans to pay their real estate agent fees will dramatically increase the cost of a mortgage. That’s unlikely to happen in most cases. What you’ll likely see is that real estate agents will agree their rates with buyers on a service-by-service basis. This will, however, make it more important to work with a real estate agent who specializes in working with veterans to make sure you are properly represented by someone who knows all the intricacies of dealing with the VA and the ins and outs of the new system. This will greatly improve your chances of getting the maximum amount of financial assistance – which could be the difference between owning the home of your dreams or not! 3. Is everything said and done? Not by a long shot. Yes, a verdict was handed down that has shaken the real estate industry to its core, but there are many more cases yet to be decided. We’re also waiting on government agencies, like the VA, to offer guidance or to implement new ground rules for VA real estate loans and how they’ll work with agent fees. Sellers are still paying commissions; they’re just not advertised. If there is no commission attached to the sale, there must be a representation agreement and possibly a compensation plan in place to pay the real estate agent, but these cannot be rolled into VA home loans . That complicates matters for VA borrowers. So everyone’s waiting to hear more from the VA in the coming weeks to see how they will react to give our veterans the support they deserve to get into the home they’ve always dreamed of. 4. Do I still need a buyer’s agent? Obtaining VA loans is already not straightforward and it’s incredibly challenging to meet all the requirements without a great deal of experience and expertise. So having a carefully selected buyer’s agent by your side who has worked with veterans and active-duty service members will be highly beneficial to you. They will walk you through the ins and outs of the process, help you deal with the hurdles that must be overcome, and ensure that you’re not taken advantage of during the process. Now, more than ever, having a veteran specialized buyer’s agent can really make or break your chances of owning your dream home. The (not so) Final Word Ultimately, don’t believe the hype. Yes, the ruling changes things, but not necessarily for the worse in many ways it is still the same as it has been as long as Sellers are still offering commissions. Many veteran homebuyers and sellers may see better outcomes. And remember that the process is far from done. We are expecting further news from the VA about this topic, so check in again soon to get the latest news. In the meantime, it’s important that you work with a trusted and experienced buyer’s agent who specializes in veteran home loans , who can guide you through the ups and downs. Luckily, I’m one of them! I’ve helped veterans and active service men and women buy and sell homes for over 12 years and have over 200 happy customers. Don’t take my word for it, though. Check out my testimonials to see how my experience helps my clients get the VA loan they need to secure their dream homes. Worried about what the class action lawsuit means for VA home loans and how much it might complicate the process? The best thing to do is to get in touch so I can help you set your mind at ease. Or simply give me a call at 214-789-7111. - Ginger Varga

Buying a home is more challenging today than at any point in the past few decades. Not only are interest rates on the rise, but inventory levels are low across the nation, and lenders are pickier than ever before. These factors can combine to make it nearly impossible for veterans to find a place to call home. The good news is that working with a veteran specialized realtor can be the key to taming home-buying chaos and uncertainty. Why work with a real estate agent who specializes in veterans' home mortgage options? Let’s explore the benefits. About VA Loans While the home-buying process is always complicated, veterans and certain family members have access to something that other homebuyers do not: a VA home loan. Insured by the Department of Veterans Affairs, a VA loan comes with some pretty important benefits, including the following: • No down payment necessary • No need for mortgage insurance (PMI) • Access to lower interest rates than with conventional loans • Discounted closing costs • Flexible borrower qualifications So, if veterans have access to these loans, how does a veteran specialized realtor fit into the picture? Helping You Navigate the Process Obtaining a VA loan isn’t always a simple process. A veteran specialized realtor understands the ins and outs involved with the process, from helping you qualify for a VA loan to the special documentation necessary during the application process. Another reason to consider working with veteran specialized realtors is that they can guide you to the right lender. The VA doesn’t issue loans; it backs them. The loans originate from conventional lenders. The problem is that while many lenders claim to offer VA loans, most of them don’t understand the processes and requirements. That lack of experience can cause many problems during the process, from delays to outright denials. This also applies to housing other than traditional single-family homes and mobile homes. For instance, a condo or townhome community’s HOA bylaws, occupancy numbers, and other factors must be approved by the VA. You’ll also find that a veteran specialized realtor is ready for the unique timeline that usually accompanies a VA loan. This is particularly true with active-duty military service members, but it can also apply to veterans who may still be active in the Reserves but who are not active-duty military members any longer. There’s also the fact that a veteran specialized realtor understands the VA’s unique appraisal requirements. Buyers often must make repairs or renovations to a home after purchasing it, but the VA requires that all properties meet the organization’s minimum property requirements, which may exclude some homes from your list of options. A Helping Hand to Find the Home of Your Dreams The good news is, I’m a veteran specialized realtor serving the Dallas/Fort Worth metroplex. With over 12 years expertise in helping veterans and active-duty military members navigate the VA loan process, I have helped over 200 happy homeowners find their perfect home. And I can help you find the perfect place for you. Ready to get started? Click the link below and I’ll prepare a customized list of homes for you to check out. And if you are wondering what your current home is worth, I’d be happy to come out and do a home valuation for you as my gift to you. Just click here and let’s get you into your dream home! Your veteran specialized realtor, Ginger Varga

There is Positive Outlook in Today's Real Estate Market!

In today’s market, you must get pre-approved first before try getting your dream home, otherwise you might miss out on getting the perfect home under contract if you have not spoken with the lender and are not prepared properly with your finances yet (unless you plan to pay all cash). Most lenders can pre-qualify you over the phone and/or through a quick on-line application. They will ask general questions about your income, debt, credit history and assets. With this information, lenders can estimate the maximum loan amount you could qualify for. Being pre-qualified and pre-approved are two separate things. A pre-qualification letter does not look as strong to a Seller as a full pre-approval specially during any multiple offer situation when you are competing with other buyers who have been fully pre-approved. This is because the information provided to the lender was just general information and has not yet been fully verified. Pre-approved means that you have applied for a mortgage; filled out the mortgage application with your lender, they have received your credit report and verified your employment & assets. With a full pre-approval, you have more credibility as an interested buyer because you know exactly how much you can afford and the Seller can be more confident in your financing that you will qualify for the loan to purchase their home and it will not fall through during the process due to financing. In addition to being pre-approved, it is also just as important to be approved with an experienced lender with a great reputation that is legitimate, organized and accessible so they can provide you with important information throughout the process.

The Real Estate Commission vs. Sitzer/Burnett Lawsuit has caused commotion in the real estate industry. If you’re one of those who released a long, pent-up breath when the verdict was given in the class action Sitzer/Burnett lawsuit , you’re not alone. It’s not the end of the story, but it’s a good indication of where things are going. What does that mean for the real estate industry? And what does it mean for veterans trying to buy or sell a home? There’s a lot of negative hype out there, and I’d like to help you cut through it to the underlying reality and give you some answers to some of the burning questions you may have, so you understand how it may affect you. 1. Will veterans be unable to get funding through a VA real estate loan ? No, this will not affect a veteran’s ability to obtain a VA home loan . It just means that the Buyers Agent fee can no longer be advertised in the multiple listing service (MLS) by the listing agent. Commissions have always been negotiable and the industry norm has been that the Seller would pay 6% of the home’s sell price to their listing broker which is then split with the buyer’s agent at closing. This model helped Sellers to bring qualified buyers for their home and benefited Buyers as well because it allowed buyers to have representation by a licensed Realtor without having to pay for that expense out of pocket. In the past, Buyers have also at some point always signed a representation agreement with their Realtor agreeing to pay up to 3% commission. However, the Buyer never really had to pay those fees because most of the time that fee was already paid for by the Seller and even if the Buyers agent received less than 3% from the pre-negotiated amount in many cases the Realtor would not actually enforce the representation agreement to make their Buyer pay any additional fees out of pocket. This ruling changes this model in a way that it could leave both parties (Seller and Buyer) responsible for paying their own fees charged by their agent and will require a Buyers agent to enforce the representation agreement if the Seller chooses not to offer a commission because a Buyers agent will not be able to work for free and must get compensated for their work somehow. What does this mean for veterans? It is already challenging for a VA Buyer to compete with cash or conventional offers on a home because it is a government funded loan and has many rules that can make it a less attractive deal to a Seller. This is also why it is even more important for a Veteran to have good representation from an experienced VA Realtor who knows the ins and outs of the process. Now with this change, if a veteran does not have the funds available to pay the buyer’s agent’s fee in the event a Seller is not offering a commission on that home then it will put the Veteran at a bigger disadvantage because they won’t be able to be competitive enough or won’t be able to afford to buy that particular home. Currently, VA does not allow a Veteran to roll in commission costs into the loan so that could essentially leave a veteran without representation when this is a group that needs it the most. In many cases, Sellers will still be offering compensation to a Buyers Agent but again this just will not be advertised upfront. We are still waiting and hoping that the VA will be able to step in to make some changes to their regulations to ensure veterans are given the support they need and deserve. But for now, the best solution is to find a veteran-specialist real estate agent who understands your situation and can work with you to create solutions to get you into your dream home while covering their fees in compliance with the new regulations. 2. Will this make VA home loans too expensive for veterans to obtain? There’s a great deal of talk about how forcing veterans to pay their real estate agent fees will dramatically increase the cost of a mortgage. That’s unlikely to happen in most cases. What you’ll likely see is that real estate agents will agree their rates with buyers on a service-by-service basis. This will, however, make it more important to work with a real estate agent who specializes in working with veterans to make sure you are properly represented by someone who knows all the intricacies of dealing with the VA and the ins and outs of the new system. This will greatly improve your chances of getting the maximum amount of financial assistance – which could be the difference between owning the home of your dreams or not! 3. Is everything said and done? Not by a long shot. Yes, a verdict was handed down that has shaken the real estate industry to its core, but there are many more cases yet to be decided. We’re also waiting on government agencies, like the VA, to offer guidance or to implement new ground rules for VA real estate loans and how they’ll work with agent fees. Sellers are still paying commissions; they’re just not advertised. If there is no commission attached to the sale, there must be a representation agreement and possibly a compensation plan in place to pay the real estate agent, but these cannot be rolled into VA home loans . That complicates matters for VA borrowers. So everyone’s waiting to hear more from the VA in the coming weeks to see how they will react to give our veterans the support they deserve to get into the home they’ve always dreamed of. 4. Do I still need a buyer’s agent? Obtaining VA loans is already not straightforward and it’s incredibly challenging to meet all the requirements without a great deal of experience and expertise. So having a carefully selected buyer’s agent by your side who has worked with veterans and active-duty service members will be highly beneficial to you. They will walk you through the ins and outs of the process, help you deal with the hurdles that must be overcome, and ensure that you’re not taken advantage of during the process. Now, more than ever, having a veteran specialized buyer’s agent can really make or break your chances of owning your dream home. The (not so) Final Word Ultimately, don’t believe the hype. Yes, the ruling changes things, but not necessarily for the worse in many ways it is still the same as it has been as long as Sellers are still offering commissions. Many veteran homebuyers and sellers may see better outcomes. And remember that the process is far from done. We are expecting further news from the VA about this topic, so check in again soon to get the latest news. In the meantime, it’s important that you work with a trusted and experienced buyer’s agent who specializes in veteran home loans , who can guide you through the ups and downs. Luckily, I’m one of them! I’ve helped veterans and active service men and women buy and sell homes for over 12 years and have over 200 happy customers. Don’t take my word for it, though. Check out my testimonials to see how my experience helps my clients get the VA loan they need to secure their dream homes. Worried about what the class action lawsuit means for VA home loans and how much it might complicate the process? The best thing to do is to get in touch so I can help you set your mind at ease. Or simply give me a call at 214-789-7111. - Ginger Varga