Strong VA offers get overlooked mostly because listing agents misunderstand them. Many assume zero down means a weaker buyer. Often, it's the opposite. VA buyers frequently keep more cash in reserve, and they have an appraisal appeal that conventional buyers don't.
On this episode of REalizations, I sat down with San Diego VA loan realtor Madeline Foley, who has built 90% of her business around veterans and military families. We talked about why this bias persists and what it costs sellers.
Curious about this conversation? Here's a quick preview of what Madeline shared:
Why Strong VA Offers Keep Losing in Multiple-Offer Situations
Here's what I see in my market. Five offers come in. One is VA. That one often isn't even considered.
I've never understood why listing agents reject VA offers so quickly. A government-backed loan that covers 100% of the down payment should be taken seriously. According to the VA, nearly 90% of VA-backed home loans are made with no down payment. That's the benefit working as designed. It isn't a red flag.
I started REalizations after the commission lawsuits. I was angry. I felt our profession was being deeply disrespected. Then I realized we had done a poor job of showing people what we actually do. Conversations like this one are my answer to that.
Watch the full episode here:
Madeline lives in Imperial Beach, the southernmost part of San Diego. Between Imperial Beach and Coronado alone, there are four bases. Her husband is active duty. She doesn't just serve this community. She lives in it.
Her background backs that up. She is an NAR 30 Under 30 honoree, ranks in the top 1% of local agents, and leads The Foley Group, which serves Coronado, Imperial Beach, Bonita, and beyond. She also earned her first license at 18 and holds a degree in marketing and commercial real estate.
I've covered how VA financing can become the offer sellers say yes to before. Madeline brought a sharper angle. She explained why the bias against VA buyers rarely holds up, and why it can even put sellers at risk.
VA Buyers Often Have More Money Left Than Conventional Buyers
I asked Madeline why listing agents dismiss VA offers. Her answer started with a simple comparison.
“Something listing agents should think about is the service member's position. A conventional buyer is putting five, 10, or 20% down. If something happens, whether that's repairs or a low appraisal, a lot of the time that buyer's funds are exhausted. With VA, they typically still have money on the side because they're using zero percent down. On top of that, a lot of people don't know that if a VA appraisal comes in low and the service member believes the comps are there, they can appeal beyond the initial Tidewater step. They can go to the VA with a letter from the service member and do an appeal of value. It takes about five extra days, and you can't truly do that on a conventional loan. Every appeal of value I've done has come back saying we were correct. So in a lot of ways, VA actually has more flexibility than conventional.”
Think about what that means for a seller. A conventional buyer may stretch every dollar to hit 20% down. Then the inspection turns up a roof issue. Or the appraisal comes in short. That buyer has nothing left.
A VA buyer often does. Zero down doesn't mean zero resources. Before ranking offers by down payment alone, ask the buyer's agent about reserves. It's one question, and it can completely change how an offer looks.
How the VA Appraisal Appeal Keeps a Deal Alive
This was the part that surprised me most.
VA buyers have two chances to defend value. The first is the Tidewater process. Under VA Circular 26-17-18, if the appraiser expects value to fall short of the contract price, they pause and notify the lender. The agent and lender then get two business days to send in better comps.
If that doesn't fix it, the veteran can request a Reconsideration of Value after the appraisal is final. This VA appraisal appeal of value is exactly what Madeline described. It takes a few extra days. In her experience, it has paid off every time.
Conventional buyers don't really have that path. So the "VA appraisals kill deals" story gets it backwards. A VA deal may actually have more ways to survive a low number.
If you represent the buyer, prepare your comps before the appraisal lands. If you represent the seller, treat those extra days as protection for your price. The VA's own guide to the VA appraisal and home-buying process is a useful walkthrough to share with sellers who feel nervous.
Termites, Peeling Paint, and California Fair Housing for Veteran Buyers
I asked Madeline how VA requirements compare to FHA around paint and pest reports. She walked me through it, and then she raised something every California agent should hear.
“VA typically doesn't like peeling paint, and a lot depends on the appraiser and their scope of knowledge. We're also supposed to have Section 1 termite clearance to close. But something that's changed over the years is that in a multiple-counter situation, the service member can pay for termites. The seller doesn't have to. And in California, veteran status is a protected class. Agents should be careful, especially when offers are side by side, and the veteran has a very strong offer with a solid down payment and a short contingency period, saying, 'We'll pay for termites, we'll cover repairs that come up on the appraisal.' Sellers shouldn't go into that decision with a bias. They should be made aware that this buyer is a protected class.”
So, what's the problem? Exactly.
The usual seller objections- repairs and termite clearance- can often be solved by the buyer. And the legal side matters too. California's fair housing protections, enforced by the Civil Rights Department, list military or veteran status as a protected characteristic. That protection was added to the state's fair housing law through SB 222.
Here in Berkeley, I see VA buyers rarely. But when I have, I've watched agents turn them down for exactly these reasons. It disturbs me. As Madeline put it, they just don't know. Too many agents haven't taken the time to learn.
Building a Military-Focused Brand Without Running a Brokerage
Madeline works with Side, a white-labeled platform. Most people have never heard of it, because agents build their own brands on top of it. That let Madeline create a brand fully dedicated to military families, even while being part of a team.
I've been recruited by Side too. I passed because I didn't want to manage a brokerage. Madeline cleared that up. You can be a one-person show with support staff around you. You don't need agents under you.
Her path into real estate started at home. Her mom left teaching after realizing three sales would beat a year of her salary. Her stepdad was the friendly agent everyone loved. Her mom was the sharp businessperson. Watching their work change her family's life convinced Madeline this was serious work. Today she loves teaching veterans how investing can change their financial trajectory.
That focus reaches beyond transactions. She serves on the Coronado Association of REALTORS board, sits on Imperial Beach's military veterans committee, and helped create local events like Movie in the Park. It's a strong example of community-driven real estate in practice.
How Madeline Grows a Referral Business Without Cold Calling
I asked how she built a referral-based real estate business without cold calling. Her answer was refreshingly honest.
“At this point, most of my business is referral and repeat. Over the years, I've tried everything except cold calling and door knocking. I do social media, gifting, community fundraisers, client appreciation events, community events, postcards to my sphere, and pop-bys. I do a little bit of everything except the things I hate, because if I hate doing it, I won't be consistent, and if I'm not consistent, what's the point? When I started, I threw spaghetti at the wall and leaned into what worked, which for me was video marketing. Then my mentor, who had 20 years in the business, looked at my production and what I was good at and said, 'Now add this, this, and this.' We did trial and error together, and my business grew steadily, like a StairMaster, one added piece at a time. I never really ask people for referrals. I try to be a value-add and make sure my clients feel loved on. Other than the sales on my postcards, I try to keep it all about them.”
That StairMaster image stuck with me. Start with the one channel that works. Then add one step at a time.
Her rule on consistency is just as practical. Pick what you'll actually keep doing. You can see the results in the reviews from military families she has helped, and in how she shows up on her real estate Instagram and Facebook page. If you want a framework for this, here's how I think about how to build a real estate referral network that keeps feeding itself.
Helping Military Families Buy a Home in the Middle of Everything
What makes military clients different? For Madeline, it's the stress.
Many of the military homebuyers in San Diego she works with are spouses whose partners are deployed or traveling. She'll be on the phone while three kids cry in the background. Her client is packing up the whole house at the same time.
Her job is to break a stressful transaction into small steps. It's the old question. How do you eat an elephant? One bite at a time.
The bigger goal is the financial future. A smart purchase today can mean real equity when a service member leaves the military. That's a financial escape hatch, built one home at a time across homes for sale in Imperial Beach, Coronado, and South San Diego.
Why Staying Human Matters More as AI Takes Over Real Estate
Madeline uses AI to be more efficient. But she pushed back on the hype. If every agent leans on AI, we'll all look the same. The agents who keep showing up as themselves will stand out.
I agree. I'm working on my PhD right now, and AI is strictly off limits there. I've also seen what it does to real communication. My social media auto-replies sometimes go back and forth five or six times with someone else's bot. No humans involved. It's crazy.
Leaning into our humanness is the advantage. I've written more about the power of staying human in a systemized industry, and this conversation reinforced it.
I came in thinking about VA loans. I left thinking about how much depends on agents being willing to learn what they don't know. Now I have a referral partner in San Diego, and Madeline has one in the East Bay. You can connect with her on LinkedIn. I share conversations like this on my Instagram, Facebook, and LinkedIn, and you'll find more Bay Area real estate guidance on my site.
Want to hear my entire conversation with San Diego VA loan realtor Madeline Foley about why listing agents overlook VA offers and how military buyers really compete? Tune in to the full episode.
FAQ About VA Offers and Military Homebuyers
Why do listing agents overlook VA loan offers?
Mostly from a lack of understanding. Many agents assume zero down means a weaker buyer. In reality, VA buyers often have more cash left for repairs or appraisal gaps than conventional buyers.
What happens if a VA appraisal comes in low?
First, the Tidewater process gives the agent and lender a short window to submit better comps. If the value is still low, the veteran can request a Reconsideration of Value with a letter and supporting comps. Madeline says this typically adds about five days.
Does the seller have to pay for termite clearance on a VA loan?
Section 1 termite clearance is required to close. However, the buyer can agree to pay for it, which can strengthen a VA offer in a multiple-offer situation.
Is veteran status protected under California fair housing law?
Yes. California's Civil Rights Department explains how state law protects members of the military and veterans from housing discrimination, including in home purchases.
Apply to Be a Podcast Guest on REalizations
Most people have no idea what real estate professionals actually do. That gap shapes everything, from public perception to legislation. I started REalizations to change that, one honest conversation at a time.
If you serve a community the industry overlooks, whether military families, first-time buyers, or investors, I'd love to hear your story.
