Visual agent models for automating human activities on Graphical User Interfaces (GUIs) have emerged as a promising research direction, driven by advances in large Vision Language Models (VLMs). A critical challenge in GUI automation is the precise grounding of interface elements across diverse platforms. Existing vision-only GUI agents directly ground elements from large and cluttered screenshots, requiring them to process substantial irrelevant information that compromises their accuracy. In addition, these approaches typically employ basic cross-entropy loss for learning grounding objectives, which fails to effectively capture grounding quality compared to established object detection metrics like Intersection-over-Union (IoU). To address these issues, we introduce R-VLM, a novel GUI grounding approach that leverages zoomed-in region proposals for precise element localization. We also propose an IoU-aware objective function that facilitates model convergence toward high IoU predictions. Our approach bridges the gap between VLMs and conventional object detection techniques, improving the state-of-the-art grounding accuracy by 13% across diverse GUI platforms on the GUI grounding benchmarks ScreenSpot and AgentStudio. In addition, our R-VLM approach shows 3.2-9.7% absolute accuracy improvements in GUI navigation tasks on the AITW and Mind2Web benchmarks.