How to make your Oakland County Michigan VA offer stronger
VA offers are not what makes a seller’s heart flutter. Too many things can go wrong. In my experience you tend to get poor appraisers who are not local. The appraised values tend to come in low.
One of the primary reasons a buyer goes VA is because it is 100% financing. Good for the buyer. Not for the seller. Zero down buyers tend to be weak buyers. VA buyers typically ask for the seller to pay for their closing costs and there are some fees the buyer isn’t allowed to pay and those usually get picked up by the seller.
So from the seller’s perspective- Why would they look at your VA offer?
If VA is the only financing option for you, there are a few things that can strengthen your offer.
Don’t ask for the seller to pay for your closing costs. Check with your lender, but I believe you can finance the 4 or 5% by paying a slightly higher interest rate. When you ask for a seller to pay your closing costs, you are asking that seller to take 4 or 5% less than the appraised value.
Don’t ask for anything that isn’t being offered. If the seller isn’t offering to leave the appliances, don’t ask for them. Don’t ask for the lawn mower. Don’t ask the seller to pay for a home warranty.
Don’t ask for less possession after the closing than the seller is asking for. There is a reason a seller is asking for 30 days or 45 days. You may even want to offer that possession time free of charge.
Don’t use your home inspection as a “honey do” list. You are buying a used house. Minor repairs and maintenance items are a part of home ownership.
Offer full price or even over. Especially if you are in a multiple offer situation. Also, that low appraisal may come in closer to the asking price than an offer that is right at asking price.
Obviously, if you can go conventional that is ideal. Many lenders are offering 5% down conventional mortgages
If you are considering buying a home- VA or not- please don’t hesitate to call Jackie Hawley with ReMax Encore.
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