California VA Mortgages: Writing up RPA's and Seller Credit

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Let me put back in my disclaimer here again, that this is our opinion, our recommendation. Talk to your broker, talk to your C.A.R., N.A.R.[you know] your legal representatives that you have on the hotlines, and talk to them [you know] the ways to do this. But our recommendations, KEEP IT SIMPLE! Do and offer the same way you do any other offer. Why? Because you want to make the listing agents job easy. You want them to look at your offer and go "okay, it's a VA I better read this thing like a fine toothed comb, because I'm willing to bet that there is a box that's checked or not checked I'm not use to, that [you know I'm gonna have to] okay where's, where's my seller gonna get it. Where is...?" Make it simple for them. Do it the way you would normally do an offer. [You know] Escrow. Escrow is normally split what? 50/50. So... do you write it up differently or you just go "hey you know what, I've accounted for that in my non allowed fees, knowing that [you know] my buyer can't pay them." Okay just put on there [you know] "escrow will be split 50/50 per normal rule" Listing agent goes through there "okay that's there, that's there, yup, that's... that's...", "wow, this is starting to look normal" That makes their life easy.
The other parts about this. Obviously check the box that says VA. Duh. Um, but how to write up seller credit. Our recommendations here, use plain language, use numbers not percentages, and put it right in page one. So down in paragraph 3D you have an example in the book. [um] Let's go to that example. Paragraph 3D "Request seller credit up to $3500 towards buyer recurring and non recurring closing cost, to include VA allowed and non allowed fee" Put it right down there. It stands out nicely. Everything is fine. So, why do we use that terminology? Let's go back [back slide really quickly here]. "Request seller credit..." Okay yeah it's coming from the seller. "...up to a dollar sign." If you put in a percentage, that's great, at first. "Hey, I'm offering you $400,000 I would like a 2% credit." Anybody can do math in their head, what 2% of $400,000 is? And how much on the seller gonna net? Okay. If you did that math in your head, now the seller counters and says "I want 407". Now do that math in your head. What is 2% of 407? What is this seller really going to make? ... If instead you said "Hey $400,000 I'm requesting $8,000 credit." How much is the seller gonna make. That's probably easier math. The seller says "I want 407" $8,000 hasn't changed. So how much is the seller gonna make? 399. That's easier. It makes life simple. Things don't change as you go up and down. It's just one of those {one of those] recommendations. And how much on the seller gonna net? Okay. If you did that math in your head, now the seller counters and says "I want 407". Now do that math in your head. What is 2% of 407? What is this seller really going to make? ... If instead you said "Hey $400,000 I'm requesting $8,000 credit." How much is the seller gonna make. That's probably easier math. The seller says "I want 407" $8,000 hasn't changed. So how much is the seller gonna make? 399. That's easier. It makes life simple. Things don't change as you go up and down. It's just one of those {one of those] recommendations.