Friends selling to FHA buyer, good or bad?

[Bill Hitchcock]

Disclaimer: I have been a licensed NC real estate broker since February, 2005.
The disparity in square footage is concerning. The real estate commission might forgive a 2%-3% miscalculation, but not a 30% error. It sounds to me that a room in the prior appraisal was not considered as part of the heated square footage that now is. There could be a couple of simple reasons as to why.
The concerns about an FHA backed loan come from the fact that they are more stringent with loan approval requirements. More "weight" is put on both the buyer and seller.
Don't be surprised if the process takes more than 30 days. In fact, I would expect it. Please have your broker stay on top of things, even if it is not traditionally their job. FHA and VA loans have strict guidelines and it is easy to drop the ball if not on top of things.
God Bless!

[beer belly]

Originally Posted by Pinehurstcharlie

I just hope it does but they didn't know it was FHA at the first offer and counter. Just heard horror stories about FHA and don't want to see that happen to them. Was the house local you bought or not? I know folks buy sight unseen

We had previously lived nearby, and knew the neighborhood and had looked at a similar house that was going for a lower price, but needed work....this house had the major items already taken of and we felt it was worth the extra $$.....the house was on the market 20 minutes. Our first home was an FHA and during the inspection, the FHA Inspector told me that he had an issue with some paint chips because it could be Lead Paint and said he was going to be in the area, and if I could put a coat of paint over the spots, he'd approve it......he gave me two hours.....called the boss to take the day off and painted.....passed the inspection. Read on...gets more interesting.....that same house, we bought at 164k, we sold for 360k 5 years later.....that couple put in an oversized Septic and sold for 282k......current owners upgraded electric, new kitchen, central A/C, and a new Roof and now heading for Divorce and said we would have first dibs if we wanted to buy it....probably sell for the mid to high 200's.....waiting to see how this plays out

[Pinehurstcharlie]

Originally Posted by Bill Hitchcock

Disclaimer: I have been a licensed NC real estate broker since February, 2005.
The disparity in square footage is concerning. The real estate commission might forgive a 2%-3% miscalculation, but not a 30% error. It sounds to me that a room in the prior appraisal was not considered as part of the heated square footage that now is. There could be a couple of simple reasons as to why.
The concerns about an FHA backed loan come from their more stringent loan approval requirements. More "weight" is put on both the buyer and seller.
Don't be surprised if the process takes more than 30 days. In fact, I would expect it. Please have your broker stay on top of things, even if it is not traditionally their job. FHA and VA loans have strict guidelines ans its easy to drop the ball if not on top of things.
God Bless!

The addition was done prior to previous owner that is the problem. So sf should have been the same as when they purchased.

[Pinehurstcharlie]

Originally Posted by Pinehurstcharlie

The addition was done prior to previous owner that is the problem. So sf should have been the same as when they purchased.

t

Plus looking at the comparables that are emailed to me by a broker friend as

to when we list ours theirs was way off with either sf. Got a few days just hope it doesn't hit the wall

[Pinehurstcharlie]

Well now I really am a bit puzzled . The realtor that listed this property for them is a neighbor who sold this house to them 4 years ago. She knows they have done no improvements or additions . She sold it to them with 1820 sf. now she is selling for them with 2340. Now I know that I don't want to use to their realtor .

[Pinehurstcharlie]

Originally Posted by Bill Hitchcock

Disclaimer: I have been a licensed NC real estate broker since February, 2005.
The disparity in square footage is concerning. The real estate commission might forgive a 2%-3% miscalculation, but not a 30% error. It sounds to me that a room in the prior appraisal was not considered as part of the heated square footage that now is. There could be a couple of simple reasons as to why.
The concerns about an FHA backed loan come from their more stringent loan approval requirements. More "weight" is put on both the buyer and seller.
Don't be surprised if the process takes more than 30 days. In fact, I would expect it. Please have your broker stay on top of things, even if it is not traditionally their job. FHA and VA loans have strict guidelines ans its easy to drop the ball if not on top of things.
God Bless!

new kicker . This agent is the one that sold it for previous owners to them 4 years ago with 1820 sf. now she is selling it for them with 2340 . She lives down the street, she knows the only improvements are a tin roof, no additions etc. So she would question the appraisal I would think. Things are all on go looks like it will close .