My husband and I are trying to sell a condo in the US. We live in Budapest. To facilitate a sale, we offered it to our tenant at our rock bottom price of $89,900. He came back with a counter of $85,000, and apparently he wants to get a VA loan. Along with this counteroffer, we got an estimate from our realtor listing the sellers’ (our) expenses which, along with commission, deed stamps, deed prep, satisfaction, etc. etc., she included “termite letter” with the notation “Req’d for seller to pay on VA” and “VA fees Seller Req’d to pay” for $1,200, for total expenses of $5,350.
We wrote back that we’d accept $87,000 PLUS the buyer pays ALL the sellers’ costs minus the termite letter and “VA fees.” Our realtor wrote back that the seller IS REQUIRED by the VA to pay ALL the sellers’ expenses she listed. So I did a little online research and found on the VA site that the seller MAY pay some of the buyer’s fees, but not that they are required to, except that the buyer CANNOT pay for the termite letter. There is even a sentence that says the buyer may *finance *the VA fees, so how could the seller be *required * by the VA to pay it?
So I’m confused. Is my realtor trying to pull something or is she somehow correct that we cannot request that the buyer pay our closing costs? I appreciate any and all input you can offer.
From Gfactor’s post, it looks like your real estate agent is correct. However, I’d presume you can reject the counter-offer and not take anything lower than than $85K plus your estimate of these additional costs. How this makes any economic difference from having the buyer pay them directly, rather than through you, I have no idea.
I just bought a house with a VA loan. We split closing costs, but the seller did have to pop for the termite inspection. As a buyer, I love the VA, but from a seller’s POV, it’s got to be a pain in the ass. The VA inspector required a lengthy list of little nit-noid crap the seller had to do before he’d pass the house to let the sale go through.
Having just went through this a few years ago (we had several VA people apply)…we just insisted on full asking price. Sure, you are ‘required’ to pay them but the only way I can ever see that sticking is if they offer full asking price with no other deductions.
It was amazing though the number of people that really thought you should just eat the cost and would try to minimize/hide that it was a VA loan. However, they have to disclose it somewhere…look for it and mentally subtract the $1200 from their offer.
We did have an offer we accepted from a VA loan…and then received a better offer a couple days later. Normally, you would be stuck…but the dummy came back with more demands after the inspection (like I knew he would) and we flatly rejected EVERYTHING. He got all angry and insisted…and viola! We could accept the better offer.
Thank you all for your replies. I understand that we could add the fees we’d be required to pay to the asking price, to say, $91,000, but doesn’t the VA inspector get to determine the appraised value of the property? If the VA guy’s valuation is say, $88,000, plus gives us a list of things he wants fixed, we’re not obligated to accept that price or to make all those repairs, are we? We can get out then, right?
I purchased my previous house with a VA loan. The bank is really making the loan, not the VA (they just back it). As such, the bank will still use the appraiser of their choice, as long as the appraiser is VA approved. The VA inspector is a different person, and does’t perform an appraisal. He or she only makes sure the house is legal (meets code), is safe, and so on. For example when we sold a family home when I was younger, the purchaser was using VA. The only modification that we had to make was to install a handrail down the the basement. That’s the type of stuff that they’re looking for.
I seem to remember when it came time to sell my previous house, there was a field in the MLS to cooperate with VA. I could be misremembering, though.
If the the house is appraised for less than the asking price by the VA then the buyer OR seller have to compensate. I.e.: the buyer offers up some cash or you drop the price. So, that on paper, the closing cost is no more than the price of the house.
