Some things in life you just need more of. Many of us know from the old Saturday Night Live skit with Christopher Walken that we just Need More COWBELL!
See the SNL skit...MORE COWBELL!
In real estate when listing for a Seller that wants to get top dollar for their home, it is up to us as a REALTOR® to advise them what the home NEEDS to get top dollar or MORE COWBELL!
Don't let the FHA appraiser stymie the sale.
Let me explain, the Seller does not want to do anything and wants to sell the home AS IS. Yet the homes is below standard for a home appraisal for say a FHA loan. A CASH Fix and Flipper Buyer will buy the home for cash at a low price giving room for the fix and flip. I as their REALTOR® tell the Seller that by doing something (not a remodel) you can get a family that will live in the home to buy the home at a higher price if only the home will appraise with a lender without conditions.
A family that can only afford a 3.5% down payment may really want the home and is willing to fix it up over time even though it may be ugly. The key thing to tell your Seller client is that UGLY homes WILL appraise.
In an example I have had sellers reluctant to do anything but had one or more of the following conditions prohibiting an FHA appraisal without conditions:
1. Missing stove
2. Missing carpet with bare concrete showing
3. Missing light fixture with hanging wires from the ceiling
4. Peeling paint on the exterior of the home
5. Kitchen sink missing
6. Missing toilet with a hole in the floor
7. Broken window
8. Front door is boarded up
These conditions even one of them may cause the home not to appraise with an appraisal condition.
Most are rather easily fixed (MORE COWBELL).
A Buyer that is struggling to make their down payment but is handy can do these things after they move in. However, if they cannot get the FHA loan approved they will never get the home and it will likely be sold to a CASH Buyer flipper at a lower price.
Using this example, a home that is moderately fixed up (Home Depot upgrade) may sell in a neighborhood for $320,000. A similar fixer upper in the same neighborhood with FHA appraisal issues may go for $220,000 CASH to a FLIPPER. However, an UGLY home with the FHA appraisal conditions resolved may go for $280K yes, below the upgraded home but far more than the CASH flipper price of $220K.
The difference is putting a little money in to fix the FHA appraisal conditions to let a handy family that will live in the home and fix it up over time have a shot at the home and also qualify for their 3.5% down payment FHA loan.
This is a WIN for both the Seller and the Buyer. It just requires a little More COWBELL.
A young family may love to get the opportunity to buy a home that needs some love and some equity. A Seller can sell to this type of Buyer at a higher price than a FLIPPER Buyer.
Start off with Jeff Masich to find the right Arizona Home on your DREAM LIST listed on the MLS
Homes For Sale in the Phoenix Metro UPDATED DAILY on the MLS FULL PAGE view and also create here your FREE MLS SEARCH PORTAL
Meet Jeff Masich, REALTOR®
For more Scottsdale homes or Arizona Homes and Land for sale call Jeff Masich 480-242-6500
Scottsdale Living in the Phoenix Metro Area
Jeff Masich REALTOR® describes Scottsdale area living and real estate
Here is a FREE MLS Search for homes for sale in Arizona. Jeff Masich would be pleased to help you find Arizona Homes For Sale and the right home at the right price!
Press FREE MLS Search to search for Arizona Homes and Land
Comments (6)Subscribe to CommentsComment