By Joe Nelson — Retired Air Force, Nelson Home Group Team Leader and Mortgage Loan Originator
A VA offer loses to a conventional offer more often than the numbers justify, and most of the reasons listing agents give are years out of date. VA’s own reporting says VA purchase loans close faster than the industry average and that the large majority of VA appraisals come in at or above the contract price. You win these by writing terms a seller can evaluate and by having your agent answer the objection before it gets made.
For the rest of the VA buying picture in Kansas City, start at the veterans hub.
Why do some listing agents still discount VA offers?
Mostly because of habits formed in a market that no longer exists, not because of anything in the current rules. Testifying before the House Committee on Veterans’ Affairs Subcommittee on Economic Opportunity on February 15, 2024, John Bell, executive director of VA’s Loan Guaranty Service, was asked directly whether sellers are less likely to sell to veterans and answered that what we are showing is it’s misperception, adding that when 94 percent of your appraisals are at or exceeding market price, sales price, that is a pretty good indicator.
The three objections you will hear are that VA appraisals are slow, that minimum property requirements blow up deals and that VA buyers always come asking for money. Each has a factual answer, and it lands better in a phone call from your agent before the offer arrives than in a paragraph buried in the cover email. Bell also told the subcommittee that real estate agents are the primary guardian of the veteran through that home loan process, which is a fair description of the job.
Are VA appraisals actually slower than other appraisals?
No, and VA has published its own timing. In that same February 2024 testimony, Bell stated that in FY 2023, VA succeeded in improving the average timeliness on VA purchase appraisals nationwide, averaging a turnaround of an appraisal within 7 business days which is down from 9 business days in FY 2022. More recently, VA reported on June 25, 2026 that as of May 31, the average VA appraisal takes approximately seven business days.
Closing speed points the same way. Bell told the subcommittee that data shows VA purchased loans are closing in an average of 32 days, while other industry programs are at 44. Those are national averages and your file is not an average, so never put a number of days in the contract your lender has not agreed to. Show the listing agent the source and let it speak. Our page on the VA appraisal timeline and the Tidewater process covers what happens when value looks short.
Do minimum property requirements really kill deals?
Rarely, and VA has been cutting the rules that caused the most friction. In an announcement published June 25, 2026, VA said it revised minimum property requirements effective May 1, 2026 in the VA Lenders Handbook, Pamphlet 26-7, Chapter 12, describing the goal as to reduce delays, cut outdated rules and help Veteran homebuyers move faster in a competitive housing market. Among the changes, VA removed the radon gas requirement, revised the property standards for homes built before and after 1978, updated guidance on non vented heaters and adjusted regional appraisal fees.
It also helps to be precise about what the appraisal is. VA’s Home Loan Guaranty Buyer’s Guide states that an appraisal is not a home inspection, and that home inspections are not required by VA; however, a home inspection is highly recommended for every borrower. That distinction gives you room to negotiate, because the inspection is your contingency to shape while the appraisal is the lender’s requirement and is not.
Do VA buyers always need seller concessions?
No, and in a competitive file you often should not ask for any, because VA sets a ceiling rather than an expectation. VA.gov states that it does not limit credits for a loan’s closing costs but does limit seller’s concessions to no more than 4% of your home’s reasonable value, and defines a concession as anything of value added to the transaction at no additional cost to the buyer, including credits for the VA funding fee, debt payoff or prepayment of the buyer’s hazard insurance. The lender’s flat charge is separately capped at 1 percent.
A seller comparing two offers is comparing net proceeds, so a VA offer that asks for nothing can beat a conventional offer that asks for a credit. If you need help with costs, ask your lender about a rate structure that covers them before you are in competition rather than writing the credit into the offer. Our page on VA seller concessions explains what counts against the cap.
What actually makes a VA offer competitive?
Documented certainty, short timelines and terms that solve the seller’s problem rather than yours. Start with a real preapproval, meaning a lender has pulled your credit and reviewed income and asset documents, not a prequalification based on what you said on the phone, and have your loan officer call the listing agent. Nobody can promise approval, and a lender who does is one to walk away from, but a specific conversation about what has been verified carries weight.
- Shorten the inspection period rather than the appraisal period, since VA does not require an inspection and the appraisal is on VA’s clock, not yours.
- Show proof of funds for an appraisal gap in cash, because the difference between contract price and appraised value cannot be financed into a VA loan.
- Offer the possession the seller asked for, including a short leaseback, which often matters more than price to a seller who has not found their next house.
- Use escalation language with a stated cap so the seller sees your ceiling, and keep the cap inside what you can actually cover.
- Increase your earnest money rather than asking for concessions, and adjust price instead of asking for credits.
Choosing the right lender is part of this, and how to choose a VA lender in Kansas City walks through what to ask before you are under contract.
Can I pay more than the appraised value with a VA loan?
Yes, in cash. VA’s escape clause page states that when appraised value comes in below the contract price, one option is to proceed with the transaction by covering the price difference by making a down payment with the Veteran’s funds. What you cannot do is finance that difference, because the VA funding fee is the only cost that may be financed into a VA purchase loan.
That is why proof of funds matters more than a big number on an escalation clause. A seller who has been through a busted deal is not asking whether you will pay more, they are asking whether you can. Bring a current bank statement showing the gap amount, state in the offer exactly how much of a shortfall you will cover and stop there. There is also a process before you write that check, covered on our VA appraisal timeline page.
Can the VA escape clause be waived to make my offer stronger?
No. It is mandatory, it is not negotiable and anyone who suggests removing it is telling you to blow up your own financing. VA states that the clause must always be included in the purchase contract, that it must be signed by the buyer and seller on all VA home purchase loans if the sales contract is signed before the Veteran receives the Notice of Value, and that without it VA will not guarantee the loan. The clause says the purchaser shall not incur any penalty by forfeiture of earnest money or otherwise be obligated to complete the purchase of the property described herein, if the contract purchase price or cost exceeds the reasonable value of the property established by the Department of Veterans Affairs.
Explain it rather than hide it. A listing agent who understands that the clause protects the buyer’s earnest money only in the specific case of a low appraisal, and that the buyer can still choose to close by bringing cash, usually stops treating it as an open ended out. Our page on the VA escape clause has the full language and the common misreadings.
What should I never do to win a multiple offer?
Never write a personal letter to the seller. The National Association of Realtors warns that these letters create fair housing exposure, quoting its director of fair housing policy that if the letter reveals the buyer’s race, religion, national origin or other protected category under fair housing laws, and the seller chooses the offer based on that information, the seller could be violating the law. NAR’s guidance to agents is to decline to deliver them and to counsel sellers to decide on objective criteria. These letters rarely stay on the subject of service, and our team does not pass them along.
Also do not remove the escape clause, do not agree to a closing date your lender has not confirmed and do not let anyone tell you an offer is approved before underwriting says so. If you want to see how the tradeoffs look against a different loan, VA loan versus conventional in Kansas City compares them honestly.
Who this applies to and who it does not
This page is for an eligible buyer using VA financing on a house that draws more than one offer. It is less relevant if you are buying new construction where the builder sets terms, or buying off market, or paying cash, and it does not apply to Native American Direct Loan files, which carry their own timelines.
It also may not fit if your cash position is thin. Much of what makes a VA offer strong here is the ability to show funds for an appraisal gap and to absorb costs the seller will not pay, and a buyer with no reserves is better served by targeting listings with less competition than by writing terms they cannot back. I am licensed as a Realtor and as a mortgage loan originator and cannot serve in both roles on the same transaction, so this is education rather than a loan offer, and approval rests with the lender and with VA.
Frequently asked questions about VA loan multiple offers
Are VA appraisals slower than conventional appraisals?
Not according to VA’s own reporting. VA’s Loan Guaranty Service testified to Congress in February 2024 that VA purchase appraisals averaged a turnaround within 7 business days in FY 2023, down from 9 in FY 2022, and VA reported in June 2026 that as of May 31 the average VA appraisal takes approximately seven business days.
Can I waive the VA escape clause to make my offer stronger?
No. VA states the escape clause must always be included in the purchase contract and that VA will not guarantee the loan without it. It is a condition of the guaranty rather than a negotiable term, so treat it as something to explain to the listing agent rather than something to remove.
Can I pay above the appraised value on a VA loan?
Yes, but only with your own funds. VA allows a buyer to proceed by covering the price difference with a down payment from the Veteran’s funds, and that difference cannot be rolled into the loan, because the VA funding fee is the only cost that may be financed into a VA purchase loan.
Will asking for seller concessions hurt my offer?
It can, because sellers compare net proceeds. VA limits seller’s concessions to no more than 4 percent of the home’s reasonable value, but that is a ceiling and not an expectation, and in competition an offer that asks for nothing often beats one that asks for a credit. Ask your lender about other ways to cover costs first.
Where can I see homes for sale and current prices in Kansas City?
You can browse active listings and pricing across the metro on our home search page, and our featured communities pages break the market down town by town so you can see where competition is heaviest.
Ready to make the move?
Ready to make the move? Work with the top-rated team serving Kansas City veterans — or call us at 816-680-6624.
Equal Housing Opportunity
Nelson Home Group is committed to the Fair Housing Act. We do not discriminate on the basis of race, color, national origin, religion, sex, familial status, or disability. School district and neighborhood information on this page is provided for factual informational purposes only and does not constitute a recommendation to purchase in any particular area. All buyers are encouraged to independently research neighborhoods, schools, and communities to determine the best fit for their individual needs.
Joe Nelson is a licensed Realtor in Missouri and Kansas, and a licensed mortgage originator in Missouri and Kansas (NMLS #2547018). Joe cannot serve as both Realtor and loan officer on the same transaction. This page is educational and is not an offer of credit or a commitment to lend. Loan products, rates and qualification are subject to underwriting and may change. Eligibility determinations are made by the U.S. Department of Veterans Affairs.