VA --- Help With Bidding..
Hi Everyone,
I am bidding on a Va House. Need help. This house is sitting in a 50K area and the asking price is 58K. What would be the recommedation for an offer of an all cash deal? Should I bid 20% below asking price?
I know to take the value and subtract the rehab cost, plus the holding cost. My question is what is the rule of thumb for VA houses -- for accepting a bid below the asking price? Thanks
For HUD, the lowest I got them to accept was about 10% less than the asking price.
10% is basically all I have gotten from the VA also. The funny thing is they wouldnt accept a 15% discount but then they dropped the price 10% and accepted a 10% discount on top of that. I have found the VA very frustrating to work with and they have wasted enough of my time. If I find out that a house is a VA foreclosure, it has to already be at a substantial discount for me to even consider it. That being said, you could always low ball it and see what happens.
okay.. Thanks...
That was my question..What do I offer.. becuase I did not know the numbers.
So, what I am hearing is offer 87% of asking. Is this correct?
That was my question..What do I offer.. becuase I did not know the numbers.
So, what I am hearing is offer 87% of asking. Is this correct?
The total net to seller must be 87% of list price. Your Realtor will get 6% for commisions which must be accounted for in these numbers. So, as far as you are concerned, your offer could be around 93% of list price. On the VA Offer to Purchase Contract line 7H is "NET" to VA. That figure must be within that 87% range. Offer price(line 7A) minus any closing cost(line7D) minus 6% commision(line 7E) = NET to VA.
Hope this helps.
I think the NET percentage is lower.
Keep in mind that whoever is putting in the bid for you can lower the percentage of commission that is paid to them, allowing the net to work. There is also another factor in there using 1.5% up, forget what that was for. It has been 3 years since I got one, but it was closer to 84%. I did not ask my realtor to lower her commission, so she was willing to put in a bid every day until we got just the right little amount. Your realtor should be willing to lower to 3% for you if you do regular/referral/or repeat business w/them.
My market is slowing down now.. So, I will wait until winter then look and buy. Thanks everyone..