So, we are trying to get an offer accepted on a house that was purchased by an “investor” (Ya, who ain’t one of those these days!?) and our buyer is planning to use the FHA for financing…The agent representing the “investor seller” is also that investor’s “partner” and they (in my opinion and I believe theirs now) seem to have overpaid dramatically for the home before renovating it for sale…The current asking price ($300,000 +/-) has NO relationship to the neighborhood comps or the comps of ANY nearby neighborhood for that matter! It’s overpriced by $25,000-$40,000 easily!
The “agent” and her “partner” the “investor” seem unwilling to accept our ABOVE list price offer (we are offering over list so we get the deal-our appraisal will sort out true value-a strategy needing to be used when houses are listed WAY over value) because our FHA appraisal will be…..lower than a conventional appraisal…..simply because it’s FHA! (REALLY!? Did she just say that!??)
Folks, listen…if you’re concerned about a buyers appraisal…simply because it’s FHA…You’re NOT really concerned about that…You’re concerned that the property is overpriced and NO appraisal will cover it! I suggest listing the property where it belongs and picking from the multiple offers you’ll get. FHA, VA, conventional…mean NOTHING when being appraised and anybody that thinks so is simply misguided and wrong. Pick a quality, strong buyer and your home will sell at market value…No more, no less-regardless of the financing being used. If you (the “investor” in this case) made a mistake with the purchase price you paid…or the level of improvements after purchase…Don’t expect someone else to bail you out
And one more thing…when an “agent” says they will wait for a cash buyer…Really? UGH!! So if someone, say an “investor” is smart enough to amass cash sufficient to purchase a home in South Florida…today…don’t you believe they are smart enough to have it appraised as well? It’s $400 and cheap insurance. Cash does not = stupid…Well, maybe in this case it does…Did I mention the “investor” paid…cash? (I bet they didn’t appraise it then either!)