EXIT Prime Realty & EXIT Realty Mitchell 
Locally Owned, Nationally Recognized

VA Allows Buyer-paid Broker Fees - 11/13/2024

The U.S. Department of Veterans Affairs, known as VA, issued a policy change that now allows payment to buyer brokers on VA loans.  They will be subject to certain safeguards, such as the requirement that all buyer-broker fees charged to veterans "must be reasonable and customary within local markets."  The circular is effective Aug. 10, 2024, and is valid until rescinded.

The VA also clarified that veterans can still ask sellers to cover these fees which in most cases will be negotiated in the offer to purchase agreement.  As the practicality of the settlement of the lawsuit becomes clearer, VA is expected to issue a permanent policy.

This change in policy will protect veterans in situations where there is competition for a particular property and the seller might select another offer because those buyers were paying their own buyer's agent fee.  Prior to this policy change, veterans were not allowed to pay, "under any circumstances, be charged a brokerage fee or commission in connection with the services of such individuals."

Both the National Association of REALTORS® and the Mortgage Bankers Association have been lobbying the VA to address this prohibition and are thankful for addressing the issue to keep veterans who want to use their VA benefits to purchase as home.

VA mortgage loans have many benefits and options to structure a home purchase to fit your individual situation.  Your real estate professional can help you find the home that fits your needs with affordable financing.

For more information on changes with buyer's agents, download Buyers Agent Guide and contact your agent with any questions you may have.

 

Tonya Klingaman ABR, SRS, C2ex, CREN, CREM, CLE EXIT Prime Realty & EXIT Realty Mitchell Mitchell, SD (605) 999-0276 (605) 990-3948 15848 Our mission is to inspire a positive, enduring impact and to establish leadership within the Mitchell Real Estate Industry, while enhancing our reputation throughout South Dakota. Since our establishment in 2005, we have provided our clients with extensive knowledge and expertise in the real estate sector. As a locally owned company recognized on a national level, we offer our clients extensive reach within the real estate market. At EXIT PRIME REALTY and EXIT REALTY MITCHELL, we are guided by the following values: COMMITMENT. We are devoted to delivering the highest standard of service by being solution-oriented and consistently striving to meet our clients' needs. OWNERSHIP. We hold ourselves accountable to the highest standards, continuously raising the benchmark to foster improvement in our operations. DRIVE. We are determined to excel in all aspects of our work, collaborating as a cohesive team to support and encourage one another, while refusing to accept anything less than extraordinary outcomes. HUMILITY. We recognize that our success is built upon the diligent efforts of each team member, as well as the support of our families and clients. INTEGRITY. We are committed to honesty and consistently doing what is right for our team, our business, and our clients, which ultimately leads to mutual success and respect. PROACTIVENESS. We prioritize innovation and are continually seeking ways to enhance our collaboration with our team, our business, and our clients. EXCELLENCE. We deliver unparalleled professionalism and exceptional service, maintaining our position as leaders in innovation through education and technology. CHARITY. We are passionate about contributing to our community and making a positive difference by assisting those in need. Contact Me Visit my Website Send a Referral Subscribe to Newsletter