Seller is Veterans Affairs : Will they negotiate

Seller is Veterans Affairs : Will they negotiate

Colorado Springs, CO · Member since 2015 · 98 posts · 59 votes

There is a foreclosed property I've been watching that is owned by "Secretary of Veterans Affairs". I assume that means someone defaulted on a VA loan ?

It has been on the market a while and the price recently dropped by $10k.  It doesn't look too bad, but one problem is the roof : layers of asphalt shingles over old wooden shake shingles.  (Property is old, built in 1899).

If I was going to put a bid on the property, would it make any sense to ask that the roof be replaced ? Is the VA just like any other seller in that regard, or do they play by different rules ?

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Rental Property Investor · Rockwall, TX · Member since 2015 · 891 posts · 701 votes
10y

@Jeff S.

I highly doubt that they will replace the roof for you prior to close. I would price your offer accounting for the roof repair and/or any other repairs which are needed. You can always ask for seller concessions at closing to help defer the costs.

-Christopher

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  • Rental Property Investor · Rockwall, TX · Member since 2015 · 891 posts · 701 votes
    10y

    @Jeff S.

    I highly doubt that they will replace the roof for you prior to close. I would price your offer accounting for the roof repair and/or any other repairs which are needed. You can always ask for seller concessions at closing to help defer the costs.

    -Christopher

  • Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
    10y

    I deal with VA foreclosures all the time. Around here they don't really have to negotiate because demand is so high, but, they will negotiate.

    In my experience, they won't budge much, last one I bought they came down $500.

    It's not that they play by different rules it's just that they are selling the house at below market value, which removes most of your leverage.

  • Colorado Springs, CO · Member since 2015 · 98 posts · 59 votes
    10y

    Okay, thanks @Christopher Brainard and @Alexander Felice.

    Yes, the price is pretty low already.

    Maybe this would be a good place to use a 203(k) loan to fix the roof and freshen the place up a little.

  • Investor · Albuquerque, NM · Member since 2015 · 20 posts · 13 votes
    10y

    I would try the 203 loan option and depending on how long it's been on the market I would offer lower. Ft. Carson has a dependable stream of renters along with the flipping possibilities with a home like this.

  • Rental Property Investor · Rockwall, TX · Member since 2015 · 891 posts · 701 votes
    10y
    Originally posted by @Jeff S.:

    Okay, thanks @Christopher Brainard and @Alexander Felice.

    Yes, the price is pretty low already.

    Maybe this would be a good place to use a 203(k) loan to fix the roof and freshen the place up a little.

    It would be worth checking into. I've never used a 203k loan, so I don't have any input on the matter. As for the price, if its quite low, they may already be taking the roof into account.

    -Christopher

  • Investor · Miami, FL · Member since 2015 · 1k+ posts · 390 votes
    10y
    Originally posted by @Jeff S.:

    There is a foreclosed property I've been watching that is owned by "Secretary of Veterans Affairs". I assume that means someone defaulted on a VA loan ?

    It has been on the market a while and the price recently dropped by $10k.  It doesn't look too bad, but one problem is the roof : layers of asphalt shingles over old wooden shake shingles.  (Property is old, built in 1899).

    If I was going to put a bid on the property, would it make any sense to ask that the roof be replaced ? Is the VA just like any other seller in that regard, or do they play by different rules ?

     Jeff-

    Never hurts to ask, worst case they will say no, but they are acting as would any other seller, so negotiate your position that makes sense for you.

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