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Old 08-25-2008, 09:13 PM
 
28 posts, read 82,426 times
Reputation: 20

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I believe that no seller wants to accept my offers is because of these statements:

Buyer Seller shall pay 1% discount points

Seller to CR 4% for Buyers VA Non-Allowable (Lndr, Escrow/Closing Fees) with remaining balance to Buyers Re-occurring & Non Re-occurring CLS/Settlement Cost

Is there any way I can make my purchase bids more acceptable? I still want to use my VA
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Old 08-26-2008, 05:28 PM
 
Location: Plano, Texas
1,676 posts, read 6,334,056 times
Reputation: 684
Basically you are asking for a seller concession of 5%. There are 2 approaches that referral partners of mine(realtors) use to get the concession.
1. You can negotiate the price. So lets say you agree on a $200,000 purchase price, then instruct the agent to write the sales contract for $210,000 with the seller donating $10,000 back to cover costs and discount points. This creates no negative tax implications for seller as they are walking away with the $200,000 you agreed to buy the home for. This way you are only negotiating price and not confusing anyone with the concession.
2. When you put your offer in, put it in for $210,000 and request a 5% seller concession. I would suggest that instead of saying 1 discount and 4% non allowables, just use 5% concession. I am a fan of the KISS program. Keep It Super Simple. the way you describe above is confusing.

You should be working with a realtor that should handle this for you. Most of my referral partners use the first method.
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Old 09-03-2008, 02:16 PM
 
Location: Between a Rock and a Hard Place
110 posts, read 459,700 times
Reputation: 68
Can one get more than 4% in consessions from a VA loan?
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Old 09-03-2008, 05:18 PM
 
Location: Cary, NC
1,036 posts, read 3,627,833 times
Reputation: 503
Quote:
Originally Posted by dangelo View Post
Can one get more than 4% in consessions from a VA loan?

Up to 6% of the sales price from any "interested parties". These include the seller, builder, Realtor or broker. That is what the guidelines allow.... getting the parties to agree to it is part of the negotiation.
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Old 09-03-2008, 08:00 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,095,994 times
Reputation: 1007
it's not just because of that.

most sellers dont want to deal with the hassle of a VA loan.

not only does the borrower need to qualify, but the property guidelines are set to the toughest appraisal guidelines in the history.

Newer homes are subject to VA guidelines, but you'll never know until the appraisal is done.

Quote:
Originally Posted by tool123 View Post
I believe that no seller wants to accept my offers is because of these statements:

Buyer Seller shall pay 1% discount points
Seller to CR 4% for Buyers VA Non-Allowable (Lndr, Escrow/Closing Fees) with remaining balance to Buyers Re-occurring & Non Re-occurring CLS/Settlement Cost

Is there any way I can make my purchase bids more acceptable? I still want to use my VA
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Old 09-03-2008, 08:01 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,095,994 times
Reputation: 1007
yes but VA is very strict on the different types of fees. They don't allow all the types, and it can be a hiccup at closing if not looked at beforehand.

Quote:
Originally Posted by dangelo View Post
Can one get more than 4% in consessions from a VA loan?
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Old 09-03-2008, 11:46 PM
 
28 posts, read 82,426 times
Reputation: 20
I already have a pre approved VA Loan. So the qualification is no problem. I just don't understand why a bank would sell for alot less than what I offered due to a VA Loan?
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Old 09-04-2008, 09:27 AM
 
4,542 posts, read 11,547,065 times
Reputation: 3063
Quote:
Originally Posted by tool123 View Post
I already have a pre approved VA Loan. So the qualification is no problem. I just don't understand why a bank would sell for alot less than what I offered due to a VA Loan?
If the property is bank owned, and in any kind of disrepair the appraisal will reject the property.

If you want to use a VA loan you may not be able to buy an "as is" property.
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Old 09-04-2008, 04:04 PM
 
Location: Between a Rock and a Hard Place
110 posts, read 459,700 times
Reputation: 68
Quote:
Originally Posted by renriq02 View Post
it's not just because of that.

most sellers dont want to deal with the hassle of a VA loan.

not only does the borrower need to qualify, but the property guidelines are set to the toughest appraisal guidelines in the history.

Newer homes are subject to VA guidelines, but you'll never know until the appraisal is done.
Can sellers afford to be choosy these days?

Im with you. Here in MD people were in bidding wars for contracts not too long ago. VA was like "MUD".

Around here any contract is like gold.. just check the "Real Estate" forum.. same stuff in my area.
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