Bid Shopping. Bid shopping is an unethical practice in which a contractor discloses the bid price of one subcontractor to another in an attempt to obtain a lower bid price. Included in bid shopping is âbid peddling,â in which subcontractors themselves offer to undercut the known bid of another subcontractor.
The real estate entitlement process is frequently a political one, which involves uncertainty and often extensive negotiation and concessions in order to secure the necessary approvals and permits.
When you purchase a home with a VA loan, some or all of your entitlement is tied up in the mortgage. Because the VA usually guaranties a quarter of the loan amount, the amount of entitlement you utilize is typically equal to 25 percent of the loan amount. For example, on a typical $200,000 loan in a non-high-cost county, youâre using $50,000 of entitlement.