I am currently working with a member of the US Coast Guard he is purchasing a home in Atlantic County. The appraisal was done on the home and the appraiser couldn’t find the value to support the sales price.
VA Loans for First Time Home Buyers in Atlantic County NJ
This can happen sometimes because they do strive to protect the military member and they want to make sure the value was there before they purchase the home. So my buyer had to walk away from that house and look for another home. It can be very frustrating. We have to remember that they are trying to protect the people who are serving our country.
The buyers were first time homebuyers and were frustrated with the process. But the more we talked about it, the more they learned about the process of the appraisal and home inspection. My goal is to educate and help our military members.
VA Loan Appraisal
If you’re thinking about using the VA loan just keep in mind the appraiser is going to come in and they’re going to look at sold comparables in your neighborhood for the past six months. Looking for the same size home, same style of home etc. and they will compare that house to see if the sales price you’re offering makes sense and can be supported. If it can’t, they will ask the agents to supply some comparables that they feel will support it.
In most cases they do not raise the value if the comps do not support it in the eyes of the appraiser. In this case we gave the appraiser three comparables in the neighborhood and explained how the neighborhood was different from other neighborhoods as far as values and how they hold their values overtime. But the sales price could not be supported, so my buyers had to be released to go look for another home. The second home that we put an offer on is in a different neighborhood but has comparables from June that actually support a higher price point.
Atlantic County NJ Market
My buyer should be walking into a home that has no problem appraising and has some equity in it for him for the future. He’s a first time home buyer wanting to invest in Atlantic County which is really making things good for the people that live here. The more people that move here and invest here the better our economy will be for everyone. If you are a member of the military and you haven’t used your VA loan or even if you have used your VA loan, you may be able to use it for a second purchase. I have military members who have used the VA loan three times. You just need to call and find out what your certificate of eligibility says as far as how much you are allowed to use for the VA loan.
As far as the appraisal goes we just have to keep in mind that we make sure we are offering a solid sales price. The price should be supported in the neighborhood and if anything were to come up with the appraisal then your agent can offer comparables that may change the appraisers mind. It doesn’t happen a lot but when it does, it is definitely a roadblock that we have to try to maneuver around. But if you have a good agent that knows the area he/she will be fine! Good luck on your house hunting! Call me if you’re looking to rent, buy or sell in New Jersey.
Contact me for VA information
Full time Realtor and Rental Property Manager
703 White Horse Pike
Absecon, NJ 08201
Cell (609) 312-8949 Text me for quick response
Office (609) 641-8600
Fax (609) 641-4141
Specializing in Selling, Renting including Property Management and Buyers Agent.
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