All Forum Posts by: Blaine Brown

Thanks @Ralph C. and @Wayne Brooks,

While this isn't a super deal, it does work.  It even works with the extra cost.  It is a house I want in the location I want.  I just threw out an offer with little confidence that it would get accepted.  Since it works, I'm going to eat the cost so I don't lose the deal...since it's still a deal.  

I'm glad to know that the selling agent doesn't know what the government or the banks will do or can do.  This sits a lot better with me.

Thanks again fellas.

Hello BP.  I've got a weird situation that all of my mentors are struggling with a little bit.  Decided to post it here to see if anyone's been in the same situation.  

I have an accepted offer and am under contract with the VA here in Delaware (VA Foreclosure). In Delaware state transfer taxes are waived if you buy a home from the government. The first question I asked my agent was if I would have to pay the transfer tax. "No" was the answer. About two weeks after signing the contract I was contacted by my agent and loan officer to disclose to me that the VA is going to "push" the house to the bank so I need to sign an addendum. I asked about the transfer tax and was told "yes", you'll have to bring an extra $2K to the closing table to cover it. I decided to let it sit for a while, while I tried to find out more info. Selling broker said they don't know who the owner really is...(huh?). Selling agent never got back to me as to who the bank closing agent is going to be. I was then sent another addendum changing the seller from the VA to the bank. I didn't sign it and said my intent was to uphold the contract I have set in place, which is with the VA. The attorney said this happens about half the time and that's where the advise seemed to stop. Since this has been dragging out for quite sometime now, I was just sent yet another addendum tonight stating that the only change to the contract is that the closing date needs to change. Oh, but at the top it now states the seller is the bank.

I feel as though the selling broker dropped the ball during the initial contract and has been a little deceiving in trying to get me to sign something to show I know about the soon-to-be bank ownership, which in turn will cost me $2,000 more than what I originally planned with my offer.

Am I on the wrong page here?  Do I have any other options?  Thanks for everyone's time.  Hopefully this was clear enough.

Welcome John.  I live in Dover myself.  What were you doing to help others out?  What type of investing are you looking at doing?

Charlie,

I'm going to assume your rental is in the Dover area.  If so, militarybyowner and ahrn are good site to compare rents.

I like it Dan, thanks.  I'll look into getting my license.  I guess that's what an inspection contingency is for when you put an offer on a home you've never seen. 

I appreciate the comments Michael.

The reason I'm on here asking is because I truly don't know. I have absolutely no experience in sales and don't really know what comes with the territory. I would have a difficult time putting in work hours based on a "hope it turns out".  I started feeling as though I'm wasting his time, but wanted to get others' views on it.  What I'm finding is this is just part of the game and if he thinks there is no potential value in it then he can ask me to go find someone else. I think you may have misunderstood comments about going to a listing agent.  I don't really care about them having my interests in mind (of course they don't) because I know he/she has to submit whatever offer I put forth.  The agent then doesn't have to split a commission and I won't be dragging around my agent and wasting his time.

I just figured having my best interests in mind isn't suggesting that I pay the same price for an old run down house as a completely remodeled and beautiful home down the street.  I just thought comps worked differently, not based solely on square footage.  I also didn't know you can comp a house based on the asking price of other homes for sale in the area.  I've found that each agent I work with tries to get me to pay as much as possible for a home.  For good reason I suppose.  It makes it for a much better offer to get accepted as well as a higher commission rate.  I've even been told by one agent that banks don't move on price anymore so I should just offer full price if I want the house.  I figured a buyers agreement would fix all of this.  

From everything I've gathered here, I'm just going to keep with my numbers and continue doing what I'm doing. I'll either get something accepted or he'll eventually ask me to find someone else.

 Thanks Russell.  So can I assume every now and then you get a "yes, that's a possibility?"  I guess I just figured the formalization of an offer would provide more incentive since a deposit is put down.  Just like anything else, I'm sure it all depends on the situation.

That's a great idea James.  I must be looking at real dumps.  I can't get a loan on any of the properties I'm looking at because they are "uninhabitable."  I figured cash with no finance contingency would be a little more incentive to sell, but I'm finding not to be the case.  Now I see why some of these places sit for the long periods they do.   

 I like that approach James.  It is one that I will keep in mind when I can fund more than one house at a time.  This seems to be a good approach to maximizing both of your time.  I'm still at the submit one and see what happens.

Thanks everyone.  I pose this question also because this guy is prompt and gets back to me immediately.  He is a wealth of knowledge with regards to how real estate is set up.  He submits offers at night after his day has ended.  None of which I expect.  I've worked with others in the past and will quickly move on if I'm not "feeling it".  This guy has been awesome about stuff.  It's only the "comps" that I raised an eyebrow about, but I also wonder if I'm the one that is clueless; which I know I am due to my lack of experience.  My understanding though is that both agents really work for the "seller" unless you sign an agreement, or am I wrong?