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FHA BUYER $300,000 AND BELOW

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Commercial Real Estate Agent with Prudential California Realty - Commercial Agent

What a great time to buy if your a first time home buyer right? Tax credit....great, Low prices......great, FHA loans 3.5% down available.......Wow! But here locally in San Diego it's virtually impossible to get your FHA buyer in a home. Investors outbidding you, listing agents misidentifying homes that do qualify under FHA guidelines....what a mess. In today's market all buyers should have the same opportunity to purchase these great homes. The American dream should not only be available to the already established investor just because a Realtor wants an easy sale. We are in the business of helping people achieve their real estate goals. Many REO agents are losing focus and more concerned with keeping their broker rating high with the banks. As prices start rising the low income buyer will have missed the boat, not because they did not want to get on, but because they were not given the chance.

Danny Damian - Coldwell Banker Residential Brokerage, San Diego

www.damianrealestate.com

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Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Hi Danny. The strategy I see happening with FHA buyers is that they will overbid the property. For example, if there is a listing at 280k and the high end of the comps is 290k, then the FHA buyer will come in at 310k. Then when the appraisal comes in, they will renegotiate the purchase price to the appraised value.

Hope that helps!

Oct 08, 2009 01:04 PM
Vito Lotta
Premier Mortgage & R. E. - Santee, CA

Great Post Danny,

I have been having a very hard time with one of my FHA buyers for the same reason you mentioned. we seem to keep losing to cash buyers time after time. By the way be careful with the over bidding strategy a lot of brokers are aware of that and won't accept offers that are over priced. I know of a few REO agents that ignore over priced offers.

Oct 09, 2009 04:05 AM