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We haven’t signed the contract yet. Purposely delayed because we’re considering changing our counter. We’re a little concerned about what the appraisal will come in at, so we think we’re going to lower the sale price to $383,500 and offer $3,500 towards closing. We shouldn’t have to pay anything towards THEIR closing!!! Of course, with a little luck maybe we will have another offer that comes in over the next few days. That would be a wonderful thing for us to consider!
So have they responded at all to your counter? Is what you “haven’t signed” just their original offer? As others said, what you should be concerned most about is your net. Yes, it is understandable to be concerned about the appraisal, but you shouldnt concern yourself with how much they’d be getting in closing cost assurance. Is your agent concerned about the appraisal?
So you previously countered $389-$7=$382, but now essentially want to lower it $2K by countering $383.5-$3.5=$380? IMO that seems like a bad move, plus if the buyers are only putting down $1K, they would likely rather have the closing cost assistance than a lower sales price anyway, since they’d be spreading that out over the life of the loan.
We are maintaining our original counter for now. Hopefully the appraisal will land where it needs to. We feel a little better because we are having language written in the contract that states that any VA-requested repairs will be the buyer’s responsibility, not ours. We are also asking to speed up the appraisal and inspection process so we don’t waste too much time off market in case the deal falls apart. Our agent already spoke with the buying agent and she thought that would be fine.
How we got screwed in purchasing this house. Let’s see...the house was on the market for well over a year and underwent numerous price reductions. We made a full price offer at the last price. Mere hours within completion of the attorney review period, our agent says there’s another offer on the house. Keep in mind - this was in the dead of winter when few people were looking. We were encouraged to increase our offer “substantially,” which we did because it was still the best house we were going to get. The house mysteriously appraised for exactly what we offered. I emphatically DO NOT believe there was another offer. Lies, all lies. We met the selling agent, and she was just this super shady beeotch, can’t explain it. She was like that mean teacher in school that no one wanted. In retrospect, we should have just walked away from this house.
As we did work to the house, we were slowly but surely able to see that the previous owners were complete morons and any work they did was poor DIY. Like there had to have been 5 layers of old kitchen floors underneath the newest one (until we redid it and ripped it all out). Our one bathroom had an entire old bathroom underneath it. These people literally put tile on top of tile and wallpaper on top of wallpaper. Not to mention...the tile on our first floor was laid right on top of the foundation with no subfloor in between. Yeah, we weren’t going anywhere near trying to fix that one. Overall, we really turned this house around. Only reason why we’re moving is due to work relocation...and the strong desire to get out of this state and try something new. You only live once!
We are maintaining our original counter for now. Hopefully the appraisal will land where it needs to. We feel a little better because we are having language written in the contract that states that any VA-requested repairs will be the buyer’s responsibility, not ours. We are also asking to speed up the appraisal and inspection process so we don’t waste too much time off market in case the deal falls apart. Our agent already spoke with the buying agent and she thought that would be fine.
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You can put whatever you want in your contract, but if the VA says repairs have to be done before closing that means you would need to let the buyers do the repairs on a house that they don't own and they have to do repairs on a house where the loan may fall thru anyway.
they have stupid rules in place. I saw one HUD house that had all the cabinet and kitchen door fronts removed. Now you would not be able to get an FHA loan because that was not acceptable and why would you do the work beforehand if they even let you and then possibly have the loan fall thru.
The language in the contract says something like “buyer responsible for all VA-requested repairs unless otherwise agreed to in writing by seller.” I agree it seems ridiculous that a buyer would be expected to repair something they don’t yet own. We are addressing a few nit-picky things like fixing a light switch in our kitchen and placing a cover around the top of one of our newer light fixtures. We also have a small (but noticeable) hole in the Sheetrock in our garage, so we will spackle that. We’re going to do the little things because, you know, it’s cheap and relatively easy to do that stuff.
Now, if this mysterious VA appraisal comes in somewhat low but is still “good enough” for us, that is when we’ll do something like “you can have the house for that price, but without closing costs.” Our agent spoke with their agent and it seems they “have some money,” they’re just being cheap and don’t want to use it. Hmmm. Maybe WE should ask for closing costs for our next house!
All we can do is see how this shakes out...and just hope for the best.
Now, if this mysterious VA appraisal comes in somewhat low but is still “good enough” for us, that is when we’ll do something like “you can have the house for that price, but without closing costs.” Our agent spoke with their agent and it seems they “have some money,” they’re just being cheap and don’t want to use it. Hmmm. Maybe WE should ask for closing costs for our next house!
All we can do is see how this shakes out...and just hope for the best.
You can ask with your next house, but it's usually instead of a lower offer. So if they are asking $250K and you want to pay $240 instead you pay $250 and ask for $10K in closing costs. This only works in a buyers market. As far as them being cheap they may not have the money, they may have no other choice but VA to get into a house.
The agents like the seller to pay closing costs instead of lowering the price of the property because they get paid a percentage of the price of the property. If you pay 10K in closing costs and the realtor take is 6% you are also paying an additional $600 to the realtors. They are pulling in a commission on the closing costs, from you, the seller. In addition, by not lowering the price of the property, the appraisal needs to come in higher for the loan.
If you are willing to pay 7K in closing costs I’d counter with no closing costs and lower the price of the house by 7K.
The language in the contract says something like “buyer responsible for all VA-requested repairs unless otherwise agreed to in writing by seller.” I agree it seems ridiculous that a buyer would be expected to repair something they don’t yet own. We are addressing a few nit-picky things like fixing a light switch in our kitchen and placing a cover around the top of one of our newer light fixtures. We also have a small (but noticeable) hole in the Sheetrock in our garage, so we will spackle that. We’re going to do the little things because, you know, it’s cheap and relatively easy to do that stuff.
Now, if this mysterious VA appraisal comes in somewhat low but is still “good enough” for us, that is when we’ll do something like “you can have the house for that price, but without closing costs.” Our agent spoke with their agent and it seems they “have some money,” they’re just being cheap and don’t want to use it. Hmmm. Maybe WE should ask for closing costs for our next house!
All we can do is see how this shakes out...and just hope for the best.
So does that mean you have a contract? If so, congrats! If not, don't get too far ahead of yourself by talking about the appraisal... If they haven't replied to your counter yet, that's probably not a good sign, unless you plan to accept their original offer if they don't accept your counter.
Now, if this mysterious VA appraisal comes in somewhat low but is still “good enough” for us, that is when we’ll do something like “you can have the house for that price, but without closing costs.” Our agent spoke with their agent and it seems they “have some money,” they’re just being cheap and don’t want to use it. Hmmm. .
as the wife of a 100% disabled vet, I’m offended by whoever said they’re just being cheap. The buyer is a vet. They’re entitled to use a VA loan, and a VA loan does not require a down payment. If you don’t want to sell to them, don’t. But please don’t make a disparaging remark about someone who is simply availing themselves of a benefit they earned, probably at the cost of putting their life on the line.
as the wife of a 100% disabled vet, I’m offended by whoever said they’re just being cheap. The buyer is a vet. They’re entitled to use a VA loan, and a VA loan does not require a down payment. If you don’t want to sell to them, don’t. But please don’t make a disparaging remark about someone who is simply availing themselves of a benefit they earned, probably at the cost of putting their life on the line.
There is still some unfortunate reluctance to sell to vets, some superstitions about VA financing.
It is ridiculous.
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