Why Take an FHA offer if you don't have to?

By
Real Estate Agent with Smart Green Realty

I'm officially afraid of FHA financing. The market is so strong that I have the option to fend off FHA offers for my sellers. There are plenty of mediocre credit score, low down payment, conventional loans around--if you look for them. Why put a seller at risk for FHA repairs if you don't have to? 

Two years ago I had a 60-year-old, modest row house on the market. I had sold the house to the owners four years before so I had been through a building inspection and was confident that the house was in good shape. When it came time to sell, we took an FHA offer. The potential buyers had their building inspection. We negotiated the repairs and the price. Then came the FHA inspection. The FHA inspector required additional repairs to the sidewalk and storm drain--issues that had not come up in two different building inspections: Total cost-- almost $4000 dollars. That is a crazy, high amount on a $125,000 sale. I don't know what the answer is. I used to believe in FHA. I also want every buyer to get a good house at a fair price. Thoughts?

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Lending / Financial
Tags:
fha

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
187,264
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

No question that FHA offers have greater risk. If you are lucky enough to have multiple offers to choose from, you can avoid them. But it may be better than sitting on the market waiting for a better offer.
In the end you have to do what’s best for your client.

May 02, 2019 07:36 AM #1
Rainmaker
4,003,361
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Zeta, you do have some valid points, but the cash offers I have had recently have become more of a risk.   They opt out at anything! 

May 09, 2019 10:16 AM #2
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
103,505

zeta cross

Getting Greener Makes Your home worth more!
Thinking of selling? Can I send you a free Staging Book?
*
*
*
*
Spam prevention

Additional Information