Buying a home is a goal of many Americans and veterans and military members especially value home ownership. According to Did You Serve, a certification program for real estate agents who wish to work with military personnel, three-quarters of military service members said buying a home was one of their biggest goals after returning from service.
These men and women may have different homebuying needs than the average civilian. This is why it's crucial their real estate agent be in tune with the nuances that go into finding the perfect house for a military person or family.
Veterans and service members are eligible for a VA loan. These loans offer low rates, flexible credit standards and other great benefits that don't go along with the typical mortgage. However, Did You Serve explained one 10 percent of qualified homebuyers don't take advantage of the VA loan - mainly because of lack of education.
Service members need knowledgeable agents
Real estate agents are important to the homebuying process for many, but an agent experienced in working with service members and their families are important for veteran homebuyers. This is because many of them may not know how to look for house that meets their needs or about how to take advantage of the VA loan program. According to the Consumer Finance Protectin Bureau, service members also have access to free financial education and counseling through the Personal Financial Management Program at their local installation. It's important that real estate agents working with service members know all of their rights and benefits in the homebuying process, as some of them may not know everything they are qualified for.
When a service member looks for the right real estate agent, they look for someone who can help them navigate the complex process of buying a home. The VA loan offers unique benefits, but also has unique requirements for properties purchased through it, according to the U.S. Department of Housing and Urban Development. For instance, any mechanical systems must be checked to ensure they are safe to use and they have a reasonable lifespan. Or, homes that are heated with a wood-burning stove must also have a secondary, conventional heating system for any areas in the home that has plumbing. Knowing these requirements in advance will benefit agents who plan on working with military service members find a home.
What agents should know
Aside from available benefits and property requirements, agents hoping to help military service members find homes should also educate themselves on the rules of working with military members. For instance, Inmann explained asking a veteran if he or she is disabled could be perceived as rude and in some states, could even be illegal. Further, certain states regard military service members as a protected class, which means it is even against the law to ask if they've served. Knowing if this applies to a state in which you are selling will help to better serve your clients and can protect you from the law.
If a person in one of these states willingly discloses his or her military affiliation, you can begin helping them claim all the benefits they are entitled to. Also, if they do, a way to determine if they are eligible for the grants available to disabled veterans, agents can ask whether they receive monthly checks from the VA. This could be an indication they are disabled and may qualify for a grant for specially adapted housing.
A real estate agent working with a military service member may have to dig a little deeper to learn what the client needs from a house. Realtor.com explained some active-duty service members may only have a short period of time to find a home. This is because when they receive a permanent change of station order, they have 10 days to find a home in the new area. If a real estate agent knows this ahead of time, he or she will be able to prioritize this client better in the home search.
Also, because active-duty service members might be asked to relocate several times throughout their careers, it is especially important that the chosen home have a good resale value. The person or family may only live in the home for a few years before receiving relocation orders again. This means there is little time to increase the resale value. So, finding a home with a great value right away will prove to be beneficial to the service member in the long run.
When working with veterans and military service members, it is crucial that agents know what benefits they are eligible for, what requirements the property must adhere to, as well as all the needs the person has for the home. By educating oneself about working with this group of people beforehand, real estate agents are sure to be successful in working with this nation's service men and women.