I recently had the experience of first time home buyers looking for their first home to buy. They are, of course, wanting to close by November 30th in order to be eligible for the $8,000 tax credit. We looked at a variety of homes and they decided on one that they loved. I called the listing agent to confirm a VA loan was acceptable. I found out on that call that they had had a contract on the house right at 6 months ago that was also a VA loan. The appraisal came in below the contract price and the seller refused to sell for the appraisal price. Buyers walked. My buyers now had to decide if they wanted to make an offer and use what is now valuable time & money (for their inspection & appraisal) on a house that may not appraise for the price. VA loan appraisals stay active for 6 months and we had just crossed over that date. There is much more detail to this story but the bottom line is the same. Seller not willing to sell the house for what the appraisal may come in it and buyers not willing to pay more than what the appraised value is.
In working with buyers the goal is "no surprises". This was a surprise for me and fortunately a good lesson that we learned before writing an offer. In this case, talking to the listing broker as a good idea.
About the Author: Kelly Young
- Author's website: www.sellmyhomeincoloradosprings.com
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Kelly is an Associate Broker with Red Rock Realty. She has over 12 years experience in Real Estate in the Colorado Springs and Front Range region of Colorado. She represents buyers and sellers of real estate buying homes, land for sale, mountain getaways. Specific areas include: Black Forest, Broadmoor, Colorado Springs, Divide, Falcon, Downtown, Manitou Springs, Monument, Old Colorado City, Westside, Woodmen Hills and Woodland Park. You can reach her at 719-226-0126 or by clicking "email the author" above.
