Most contracts are written to protect the buyer, and you should get your earnest money back, should you decide to terminate for a valid reason --- inspection, title issues, appraisal, financing, etc.
Do everyone a favor and hire a REALTOR.
If the VA backed loan is GUARANTEED you will have a 'Clear to Close' indicating the buyer has passed all the requirements of the underwriters for the loan. Does the buyer have this guarantee in hand?
And of course the buyer does not, underwriting has NOT happened. The GUARANTEE is worthless.
A purchase offer without 'consideration' is not a contract. So the purchase offer is WORTHLESS. It is not a contract. (Note: That does not mean it does not happen)
The seller accepting such an offer will find themselves recovering from a situation where the RED FLAGS were waving but ignored buy the seller.
Offer such at that offered by Les should be kicked to the curb without further consideration or response.
Are you working with an agent that represents you? VA guarantees or backs you in lieu of a down payment up to a certain loan limit. This is one loan type that offers more benefit for the purchaser than others. However, lets look at it from the seller's side. Seller is looking at what you are putting in the game like Tom said below. How serious are you? First question is, you are not coming to the table with any money down, potentially no due diligence fee, and in addition, don't want to pay Earnest Money. Lets say you both are under contract. He takes his house off the market in hopes that it will go to closing. However, you or your wife decide to walk. What about the seller?
The main thing is that when purchasing property, the buyer offers EMD money to be held to indicate their sincerity and intent to go through with the purchase process. Here are the key points: the money is usually held in an escrow company account, title company account, buyers' broker trust account, or sellers' broker trust account. It is always the buyer's money in a transaction that goes through to closing. On the settlement statement it is used to offset the BUYERS' costs in the transaction.
Certainly the amount of EMD is negotiable as is to the deposition of funds when breaches occur. Please seek a Realtor® for more explanation and representation.
Diana Watson, Realtor®,SFR
Coldwell Banker Advantage
Military Relocation Professional®
Thank you for your service to our country.
If I were the Listing agent and you were not willing to give earnest money I would have them accept the offer but would continue to market the house. If the home is taken off the market and you decide to back out for any reason there is no concession for the seller or the agent to gain for taking the home off of the market. I am suprised that they accepted the offer with out a deposit. No loan is guranteed until the papers are signed at the closing table. Hope this helps.
More buyers than seller here in the Raleigh area. Do you really want this home? Put up the EMD.
Best of luck
Two things; the first being that you really should have a Buyers Agent helping protect you and promote your best interests through out the home building process. The Buyers Agent is at no cost to you and the builder is already expecting to pay this Buyers Agent cost and has it built into his pricing/marketing costs for the neighborhood. The second is that most builders use "proprietary builder contracts" and will not begin to build with no earnest money. Of course it never hurts to ask, but just want you to be prepared.
I would be happy to help, please feel free to call me. Representing buyers building a new home is a unique skill set to have and I am proud to say that I am very good at it! :)
If I can be of any personal assistance to you, don't hesitate to contact me using the link under my picture. Feel free to also visit my website using the link below.
Good luck with your home search!!
A lot of ifs.
Your escrow is refundable if your contract covers the ifs; so, if your wife likes the home, put something down. If you were the owner, you probably would want something down.