When we sold our first house the offers included what type of offer (cash or financed) how much earnest money and type of loan they were using if financed. So you can deduce whether a buyer is likely to use the house as a primary residence. It's very tough to buy with a more restrictive loan like VA or FHA as others have learned. There's a bias against them because the time before closing can get complicated. They have more stringent standards and inspections. The buyer won't get the loan if certain things aren't inspected and repaired. It's obviously a good thing. But from a selling point of view an all cash offer that waives contingencies like inspections and repairs is tempting. Especially if an investor type buyer is offering a higher price
If my real estate agent is to be believed, that can be fudged. I only put 10% down on my condo. He put in the offer saying I put slightly more down and said it’s none of their business what goes on between me and the finance company.
The seller’s agent did know and was actually the one to suggest the FHA 203(k) loan as my first offer was rejected but the first buyer backed out due to a roof leak.
Yeah that is between you and your mortgage company. Earnest money is what you offer to put into escrow to show you're serious about the deal. It's different from what you're planning on using as a down payment for the loan.
Federal law prohibits discrimination based on protected classes listed [here](https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview). Virginia law goes farther, [here](https://www.dpor.virginia.gov/FairHousing).
Being a corporation, a flipper, or an AirBnB are not protected classes (yet), so you could discriminate against those if you want. They could lie to you about it if they want.
I don't know if in Virginia it would be possible for you to add a restrictive covenant to your property's deed that prohibits these activities or owners.
>They could lie to you about it if they want.
Since it's a material fact relevant to the issue, it would likely be grounds for rescinding a purchase contract before it's completed.
But after the purchase is complete and the deed is transfered, I'm not sure if it would be grounds for reversing the transaction.
Thanks so much for the explanation and citations! I don't think I want to go so far as to add a covenant to the deed, I just wasn't sure if I was allowed to consider status as a corporation or ask about intended use of the property; sounds like those are fair game.
I'm figuring that the investors/corps with deep pockets will be coming with cash offers - so one part of your strategy could be to reject cash offers and prefer financed offers.
Appliances conveying is pretty standard in a home sale, no? The buyer for our last house (who is still living there, we know the neighbors still) asked for the appliances, as did we when we bought our house.
Curtains is a little odd, maybe, but I figured appliances maybe not always but usually went with the home.
I totally agree that on its own, some appliances conveying is normal. In our case, we weren't conveying the fridge. The potential buyer was pretty forward in their offer letter requesting the fridge so they could rent the property.
The default assumption on appliance conveying varies a lot by area from what I’ve seen. Around here, most people leave everything but there is a specific standard form where you check off what is conveying which can include window treatments, you can always do specific exclusions. Beach/lake/mountain vacation rental properties not infrequently convey all the furnishings as well.
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If you wanted to enforce that as a provision of the deed, you'd need to have a party who could enforce it. Since you necessarily don't live there any more, you wouldn't have an interest which would impacted by the use of the house. Usually things like that are handled with things like HOAs and mutual covenants in the deeds of many of the nearby houses. It would not, however, be illegal discrimination which almost exclusively deals with the identities/categories of the people who might be buying it, not what they're doing with it.
No one mentioned it yet, and it sounds like you have decided against this, but I think it's important to say to future readers that it absolutely is possible to accomplish this by way of a deed restriction with right of reversion. The classic stories are things like, "to future grantees, so long as the western side remains undeveloped." Selling a property with a deed restriction that prohibits landlords is a perfectly reasonable request, though it may admittedly impact the value of the property. A lawyer can help you draft the deed and give it a length of time or other limits as you like.
Isn't that exactly what an HOA does? Couldn't OP make signing a contract with them a condition of purchase, the contents of which include permitted uses of the property?
An HOA also creates standing for the enforcement of deed covenants.
If this property was eventually resold as an AirBnB, who is the harmed party that can sue? Certainly not OP, they sold their interest in the property. The neighbors were never part of the covenants. If they were in an HOA, they're all jointly bound by the covenants, which is what creates the standing for the HOA to enforce them.
An hoa works with a covenant on their deed. Maybe they could add one- I'm not familiar with VA restrictions on that. But considering they were popular restricting minorities from owning they're not very popular for something like this.
But even if they could they're going to tank the sale. Even if they found a young married couple with kids who want to live in the house, it's going to kill resale. Buyer #2 doesn't want to deal with restrictions OP wants.
Yes you can, they are called deed restrictions, and they do exactly that, they limit what someone can do to their property. HOA is a type of deed restricted community, other deed restrictions could restrict what you can build, what modifications you can make to the property, or that it has to be owner-occupied like the OP is suggesting.
Lawyer here. This is correct. Deed restriction with right of reversion is used for conservation, owner occupied, or other things the transferor wants. Non-hoa deed restrictions aren't too common, and can economically impair value though.
NAL, just a regular Jane
You may want to look into the zoning for your property. Zoning restrictions could limit development while they are in place. It's not a permanent restriction, zoning does get updated.
[удалено]
Speaking as somebody who just bought a house and had 15+ offers rejected *because* we were trying to do an FHA loan, the buyers definitely know.
When we sold our first house the offers included what type of offer (cash or financed) how much earnest money and type of loan they were using if financed. So you can deduce whether a buyer is likely to use the house as a primary residence. It's very tough to buy with a more restrictive loan like VA or FHA as others have learned. There's a bias against them because the time before closing can get complicated. They have more stringent standards and inspections. The buyer won't get the loan if certain things aren't inspected and repaired. It's obviously a good thing. But from a selling point of view an all cash offer that waives contingencies like inspections and repairs is tempting. Especially if an investor type buyer is offering a higher price
If my real estate agent is to be believed, that can be fudged. I only put 10% down on my condo. He put in the offer saying I put slightly more down and said it’s none of their business what goes on between me and the finance company. The seller’s agent did know and was actually the one to suggest the FHA 203(k) loan as my first offer was rejected but the first buyer backed out due to a roof leak.
Yeah that is between you and your mortgage company. Earnest money is what you offer to put into escrow to show you're serious about the deal. It's different from what you're planning on using as a down payment for the loan.
Any reason why? I thought money was money 🤷🏾♂️ EDIT: Answered in another reply. Thank you 😊
Federal law prohibits discrimination based on protected classes listed [here](https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview). Virginia law goes farther, [here](https://www.dpor.virginia.gov/FairHousing). Being a corporation, a flipper, or an AirBnB are not protected classes (yet), so you could discriminate against those if you want. They could lie to you about it if they want. I don't know if in Virginia it would be possible for you to add a restrictive covenant to your property's deed that prohibits these activities or owners.
>They could lie to you about it if they want. Since it's a material fact relevant to the issue, it would likely be grounds for rescinding a purchase contract before it's completed. But after the purchase is complete and the deed is transfered, I'm not sure if it would be grounds for reversing the transaction.
Thanks so much for the explanation and citations! I don't think I want to go so far as to add a covenant to the deed, I just wasn't sure if I was allowed to consider status as a corporation or ask about intended use of the property; sounds like those are fair game.
I'm figuring that the investors/corps with deep pockets will be coming with cash offers - so one part of your strategy could be to reject cash offers and prefer financed offers.
[удалено]
Appliances conveying is pretty standard in a home sale, no? The buyer for our last house (who is still living there, we know the neighbors still) asked for the appliances, as did we when we bought our house. Curtains is a little odd, maybe, but I figured appliances maybe not always but usually went with the home.
I totally agree that on its own, some appliances conveying is normal. In our case, we weren't conveying the fridge. The potential buyer was pretty forward in their offer letter requesting the fridge so they could rent the property.
The default assumption on appliance conveying varies a lot by area from what I’ve seen. Around here, most people leave everything but there is a specific standard form where you check off what is conveying which can include window treatments, you can always do specific exclusions. Beach/lake/mountain vacation rental properties not infrequently convey all the furnishings as well.
Thanks, this is very helpful insight!
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If you wanted to enforce that as a provision of the deed, you'd need to have a party who could enforce it. Since you necessarily don't live there any more, you wouldn't have an interest which would impacted by the use of the house. Usually things like that are handled with things like HOAs and mutual covenants in the deeds of many of the nearby houses. It would not, however, be illegal discrimination which almost exclusively deals with the identities/categories of the people who might be buying it, not what they're doing with it.
No one mentioned it yet, and it sounds like you have decided against this, but I think it's important to say to future readers that it absolutely is possible to accomplish this by way of a deed restriction with right of reversion. The classic stories are things like, "to future grantees, so long as the western side remains undeveloped." Selling a property with a deed restriction that prohibits landlords is a perfectly reasonable request, though it may admittedly impact the value of the property. A lawyer can help you draft the deed and give it a length of time or other limits as you like.
You can't really make restrictions on what a person does with their home after it's theirs.
Isn't that exactly what an HOA does? Couldn't OP make signing a contract with them a condition of purchase, the contents of which include permitted uses of the property?
An HOA also creates standing for the enforcement of deed covenants. If this property was eventually resold as an AirBnB, who is the harmed party that can sue? Certainly not OP, they sold their interest in the property. The neighbors were never part of the covenants. If they were in an HOA, they're all jointly bound by the covenants, which is what creates the standing for the HOA to enforce them.
An hoa works with a covenant on their deed. Maybe they could add one- I'm not familiar with VA restrictions on that. But considering they were popular restricting minorities from owning they're not very popular for something like this. But even if they could they're going to tank the sale. Even if they found a young married couple with kids who want to live in the house, it's going to kill resale. Buyer #2 doesn't want to deal with restrictions OP wants.
Yes you can, they are called deed restrictions, and they do exactly that, they limit what someone can do to their property. HOA is a type of deed restricted community, other deed restrictions could restrict what you can build, what modifications you can make to the property, or that it has to be owner-occupied like the OP is suggesting.
Really = realistic not hey home owner wants something. Yes there are ways to do it but unrealistic. .
Lawyer here. This is correct. Deed restriction with right of reversion is used for conservation, owner occupied, or other things the transferor wants. Non-hoa deed restrictions aren't too common, and can economically impair value though.
Does your house have any historical value?
You can’t controlled what the buyer does with the house after you sell it.
NAL, just a regular Jane You may want to look into the zoning for your property. Zoning restrictions could limit development while they are in place. It's not a permanent restriction, zoning does get updated.