02/23/2022
16 OFFERS. SIXTEEN! Story Time:
Hey, all you VA buyers out there right now fighting to get your offer picked. I hear you. It's tough out there. We had 5 military and veteran buyers offer on this home. We are proud to announce that one of you was chosen. But it was extremely difficult.
So what can you do to stand out from the rest? 22AD funds. It's necessary. I am not going to tell you to "hang tight and keep offering list price because the right home is waiting for you". It isn't waiting. You're getting outbid because of the lack of 22AD funds.
So what exactly are 22AD funds? This is what protects the seller in the event of low appraisal. Without it, your offer price doesn't mean as much. And I know what you're thinking, "Why would I ever want to pay over appraised price on a home? Isn't that a stupid financial decision?"
Well, here's the thing. In 40 VA financed transactions last year, only TWO came in under appraised value. 2. That's it. We were offering 30-100k over, and only 2 came in low. (1) came in low by $17,000 and the other came in low by $10,000.
Does that stink a little? Yes. But guess what. They both have gained over that amount in equity in 6 months. So it wasn't stupid. It was strategic.
Even though ALL those other homes appraised for our high escalated price, we still needed to show that we could pay the difference if the home didn't appraise for our offered price. THAT is what sealed our offer and got us chosen. Get those 22AD funds ready. If you don't have them, because not everyone does, then we need to start looking for homes in a different way. Let's chat. You earned your VA loan. Let's put it to use.
