Venting

[tsu1112]

Hello All,

I just need to vent a little and also see if anyone else is struggling with the same problem as myself. I currently rent a home north of Houston in a very in demand area. I am approved through NFCU for a VA loan up to 320K and have been looking for 4 months now. I have made offers on 3 different homes all for a little over asking price and every single one has been declined because investors are paying cash and can close much quicker. This has been very frustrating for my family and the last house this week was one we fell in love with. Homeowner asked for 265K and we offered 268K and not even considered.

My realtor is also telling me that because I am going VA that it is a hit against me from the start because of a new addendum that went into effect this year having to do with the appraisal.

Anyone else with the sane issues?

[Anonymous]

That is insane.  I didn't know there was a market in the country where offers over list price were even being made.  I understand the situation you're describing though.  I've heard (even before the changes) that VA loans were tricky in the appraisal phase.  Hope it clears up for you soon.  There are some professionals who post here from the Texas area, so I imagine someone may be able to give you some real information.

Hang in there!

[tsu1112]

Thank you for the reply. The reason the area is in such demand is that Exxon is building their corporate headquarters here and is bringing in 10K of their workers by 2014. The Woodlands, where I live, and am trying to buy is very close to the new facility and has the best schools in the area.

[jadeite788]

I live in Houston, and yeah the Woodlands area is in high demand.  You must be out there near Research Park, and the woodlands mall.  Sounds like for you to even be considered I would offer 5% above asking price to even put you in the hunt.  they are nice spacious homes out there.  I don't knock your hustle.  And yes there is a market out there for homes like this including HUD homes.  

[tooleman694]

I am in North Dallas, when we sold our home last year we had a bidding war.

Homes are selling fast so the offer has to be good.

Prices are climbing.

[tsu1112]

Thanks for reply. But am I limited in what I can offer with a VA loan knowing that if it does not appraise for that value or can I pay the difference in cash.

[MovingForward_2012]

The sellers may not know you will pay cash above appraisal value to keep the process moving. They are probably thinking of the issue across all VA loans. Perhaps you can add that you will be willing to pay above appraisal value for their home if required in your offer to them.

I would stay aggressive on finding a home as once the kids get out of school for the summer, houses will be flying off the market like hot cakes.

[tooleman694]

I take it appraisals have not caught up yet with the market.

We got ours when we sold and it was fine. But I heard lots of people have been having these problems.

[tsu1112]

Thank you! We definately want to buy before school lets out.

[Blackhawks_girl30]

I also had this problem and I am in the suburbs of Chicago. I made 6 offers and each one I was beat out. Some properties here went for over $20k list price so no way I could compete. The others bought by cash went for a few thousand under list but seller knew it was cash and no waiting for financing. I eventually found a home in a subdivision where no rentals are allowed. Yes this stinks if I ever wanted to rent out my home in the future, but it was a way to not compete against investors. I wish you luck I know how frustrating this can be!! Hopefully when all said and done you will look back and see something in each property you lost to make you say thank goodness!! I know I have and this home I eventually found is perfect! You will find your perfect home too