Do we have a chance on our offer?

Asked by Dez637, Lakewood, CA Mon Nov 26, 2012

We offered the full asking price on a house and did not ask for any closing cost. It's been a couple of days and we haven't heard from the seller. Will they even consider our offer or not since we are using a VA loan? And are there any rules about purchasing a flip property with a VA loan?

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Shannon Jones, Agent, Seal Beach, CA
Tue Nov 27, 2012
BEST ANSWER
You've already gotten some good answers. It's stressful to make an offer and hear nothing for a couple days, but unfortunately in our current marketplace, that often happens. In Lakewood, many of the entry-level homes are selling with multiple offers for above the asking price. Hopefully you'll get some good news soon on the home you've made an offer on. But if not, don't give up hope. If you end up making another offer, look carefully at the comparable sales and consider offering the most the comps and your budget will allow. Do write a letter to the seller telling them about yourselves and why you like the house. (Unless it's a bank-owned property - banks don't usually care about that.)

Good luck with your home purchase!
Web Reference:  http://www.ShowMeHome.com
0 votes
The asking price for this house is actually way above the comps in the area already. About $30,000-$40,000 more. This is the reason we didn't offer above and instead offered at the asking price and all closing cost be paid by us. Our realtor who specializes in this specific area of Lakewood had said that this property will mostly likely not even appraised at the asking price. I guess we'll just have to wait and see and if we don't hear from them today then on to the next one. The whole waiting thing really sucks though. Thanks for the advice!
Flag Tue Nov 27, 2012
Kawain Payne, Agent, Seal Beach, CA
Fri Dec 7, 2012
Congrats!!!!!


What better way to start the new year, than in a home of your own!

Kawain Payne
0 votes
Thank you! Our loan is now in the underwriting process and the wait is killing me. Just praying that everything with our loan is good to go. Thanks again!
Flag Fri Dec 7, 2012
Dez637, Home Buyer, Lakewood, CA
Wed Dec 5, 2012
UPDATE: After a week and a half of waiting our offer was accepted! We are currently in escrow and hopefully everything will go smooth until closing. Thank you everyone for all the great advice!
0 votes
Gene Scott, Agent, Long Beach, CA
Thu Nov 29, 2012
Hi Dez,
Regarding the request that you go with the Realtor's lender, this may not be as nefarious as it seems at first glance. A lot of home sales are not closing due to problems with loans funding. By going with the Realtor's lender, you allow the Realtor to do an independent verification that you are in fact able to get the loan. The Realtor is not getting anything out of the referral except good will as it is against the law for loan officers to split their commission with Realtors. If you like your lender and want to stick with your current loan officer, have your Realtor check to see if you can submit your documents to the Realtor's lender for verification, but stay with your lender.

Sounds like you are making some progress. Good luck.

Gene Scott
Loan Officer and Realtor
Shore Capital Corporation
562-212-2345
0 votes
Thanks and yes we've submitted our documents to the realtor's lender for verification.
Flag Thu Nov 29, 2012
J, Agent, Greensboro, NC
Thu Nov 29, 2012
Hi Dez. According to your "Quick update" below and in my own opinion, the seller is without a doubt looking for additional offers. This is in no way saying your offer is not a good offer. The more offers received is an awesome opportunity for the seller to get a great price on their property.

I did get confused by your comment, "The listing agent also mentions that there are multi offers but our offer is up there. Then he tells our realtor if we were willing to go with their lender." It reads as though there is some missing in your sentence.

One other consideration, is the property VA approved? I've run in to situations where a listed property is not VA approved. Good luck to you!
0 votes
Basically the listing agents tells our realtor that they like our offer and is one that they are considering but wanted to know if we are willing to go with their lender. The listing term for the property included VA loan. Not sure if that means its VA approve though.
Flag Thu Nov 29, 2012
Dez637, Home Buyer, Lakewood, CA
Thu Nov 29, 2012
Quick update..we are still waiting for an answer regarding our offer. Listing agent finally responded to our realtors message after 3 days of trying to get a hold of them. They said they are waiting until this weekend to respond to everyone. I think they're waiting for more offers to come through because they are having another open house. The 4th one this week. The listing agent also mentions that there are multi offers but our offer is up there. Then he tells our realtor if we were willing to go with their lender. Now I'm really confuse. We are working with a good lender and our loan officer is excellent. What would be the reason why they would want us to change lenders and should we go ahead and change? I've already gotten the advice of my realtor but I would like to get others opinions on this.
0 votes
Yeprem P. Da…, , Encino, TX
Thu Nov 29, 2012
Hello,
Be patient, this process sometimes feels drawn out and buyer/sellers do get anxiety. You have done your part and let the process work itself and hopefully you will be getting an answer soon. Good luck and stay positive!



Best,
Yeprem P. Davoodian
Pinnacle Estate Properties
0 votes
Jerome Hodge, , Long Beach, CA
Wed Nov 28, 2012
Previous replies have provided you a pretty good status of your offer and position.
One thing I feel needs to be addressed is the amount of an offer. All buyers want a good deal...and all sellers want a fair price for their home.
My advice to you is not to focus on the asking price of a home. Many times a home is priced below the fair market value. This is done to create excitement for a property and, hopefully, to receive multiple offers. It is a very good method employed by sellers who utilize a smart Listing Agent.
Your agent should generate comps for the property and your offer should reflect the degree in which you want this home. e.g. if you love the home and have decided it to be your dream home...then offer a figure that at least meets the comps. Or, if you like the property, finding it acceptable, but is may lack some of the features you desire...then offer slightly less than comp value.
In today's market, with low inventory and increasing prices... you will not be able to offer 97% of the asking price for a premier property and expect to have the seller accept your offer.
It just won't happen. That day has long past.
0 votes
Kawain Payne, Agent, Seal Beach, CA
Tue Nov 27, 2012
Hello Dez637,

VA loan offers do get accepted. Your agent needs to find waysy to make your offer stand out.

Some ways are to help your ofer stand out are:

1. shorten your contingency periods
2. offer a shorter closing date (if you can)
3. Not asking for closing cost help is a plus!
4. Have your agent write a very personal letter about you and your family
5. give the listing agent written permission to contact your lender to check status and strength of yur loan application

Now, about flipping with a VA loan, VA loans are designed to help owner occupants purchase homes, they are not for investors looking to flip.


Best of success to you!

Kawain Payne, Realtor
0 votes
Tim Greaves, Agent, Long Beach, CA
Tue Nov 27, 2012
You will need to check with your agent
0 votes
Michael Magaw, Agent, Torrance, CA
Tue Nov 27, 2012
Your agent should be answering these questions before you feel the need to ask them. What is your agent telling you? The Listing Agent typically will tell the Buyer's Agent important information, such as if there are multiple offers.

Offering full price does not tell me very much. If the home was overpriced, then offering full price may be too high. If the home was underpriced, then offering full price is too low and you should expect multiple offers above yours.

What did the comps tell you and your agent? Did you think the list price was high or low? How long was it on the market? If this is a flip, then the investor probably did not underprice it, so you may be ok.
0 votes
The comps according to our agent said that our offer at the asking price is good considering the house was a flip. The listing agent did say that we were the first offer to come through but he mentioned something about the property being that it was a flip could be a problem with a VA loan? Something with a 90 day wait? I've consulted with a va loan specialist and they really have no rules on purchasing a flip with a va loan. We offered the day the house went on the market. Either they're rejecting our offer by not responding to our agent's messages or they are waiting for more offers to come through. It would be nice to let us know where we actually stand on our offer though.
Flag Tue Nov 27, 2012
Cindy Davis, Agent, San Diego, CA
Tue Nov 27, 2012
None of us is honestly going to be able to answer your question. It's good that you offered the full price...the unknown is whether they have cash offers at full price or conventional buyers at full price. Sometimes with my VA buyers, I suggest going over the list price. It can help give you the edge.

VA buyers do eventually get homes, and I would think VA loans fund flips...if unsure, ask your Lender. He or she will know the rules of your loan better than anyone.

Good luck to you.
0 votes
Gene Scott, Agent, Long Beach, CA
Tue Nov 27, 2012
Hi Dez,
Sure you have a chance. There are many reasons why the listing agent does not get back to your agent for a few days once the offer is received. Unfortunately, one of the reasons is that he or she is waiting on a competing offer from another home buyer.

In order to try and stand out among competing offers, it is always a good idea to write a letter to the seller telling them (a) a little bit about you and your family, and (b) why you love the home and want to live there. You should also discuss with your agent what you will want to do if you receive a counter offer.

Hang in there and good luck. Let us know how it turns out for you.

Gene Scott
Loan Officer and Realtor
Shore Capital Corporation
562-212-2345
0 votes
Celeste Jabl…, Agent, Long Beach, CA
Tue Nov 27, 2012
Hi Dez,

This is a question for your agent. He/She should be communicating with you regarding the pros and cons of using a VA loan and should be communicating with the listing agent regarding your motivation and ability to get the deal to close. In the current market there are often several buyers for each property listed, making it a multiple offer situation. Under those circumstances it is important for the listing agent to have as much information about the prospective buyers as possible so when a decision is made the best qualified buyer will be picked. It is not always the terms nor price that seal a deal but the preceived ability of the deal to close smoothly and in a timely manner. I do wish you the best in your home buying endeavor.

Celeste Jablonski
Main Street Realtors
DRE#01329685
0 votes
Our realtor has been pretty much on top of things from the beginning and had explained to us all the ups and downs of using a va loan. I understand in the area we are looking at there will always be multi offers on properties as I learned that from our last offer on a house that we unfortunately lost to a higher offer. This is the reason why we approached this offer more aggressively and even put a very large amount of earnest deposit. All I want to know is if they're even considering our offer. Our agent has sent them messages and still no response. I'm thinking since they just put the house up this weekend that they are probably waiting for more offers to come thru or they are just not interested in our offer at all. The decent thing to do is to at least respond but oh well I guess the search continues. Thanks for the advice and well wishes!
Flag Tue Nov 27, 2012
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