Why would you show a non-approved condo to an FHA buyer?
Recently this has happened so much to me that I thought I would write a post about it. The poor unsuspecting buyer thinks they are in capable hands when in fact they are with an agent that doesn't have a clue.
I thought that in Real Estate 101 someone once told me (they were selling caves at that time) that you can't sell all condos to every buyer. Either they can go FHA or they can't. Can't mix and match, it's got to be a 'yes' or a 'no' for the complex.
I have a non-approved 2BR condo in the worlds smallest complex of 13. That's it folks, one building, everyone in it is retired. Since I mistakenly thought every agent knew there is no longer any 'spot approvals' for FHA I would have no problems. Last 3 showings the agent feedback was - my buyer is FHA. Great!
No where on the listing sheet do I say that it is FHA approved! Don't you check before you throw the poor buyer in the car? Don't you check before the poor buyer falls in love with the place?
It must be me. I must be crazy. I would only like to show properties that my buyers can actually purchase.
Buyers - if you would like to work with a conscientious buyers agent who actually knows her market and can tell you which complexes are FHA approved and which are not, please give me a call. I can save you many hours of driving around with an agent that doesn't have a clue!
Unless of course you need a chauffeur, then call that other agent.
You are right about checking things out first, but there is SO MUCH TO KNOW nowadays. Am I just getting OLD and SENILE, or is the information age getting out of hand? My real estate career dates back 18 years, and it seems like every year (lately every month) there are more and more complications. You need a PHD to do the basics anymore.
I prefer a knowledge buyer's agent. Keep up the good work.
Tammie: Thanks, it's alot easier when you know what complexes are FHA approved or not. It's pretty basic I thought.
Pat: You're right but to save yourself time & effort you have to know which ones are & which ones aren't. That's another reason to just stay within a certain area as your territory.
Lyn, my gripe goes beyond FHA approval for certain condo complexes. That's just one tiny piece of a giant puzzle with no picture on it. It's logical to want to stay within an area of expertise (niche) but you wind up severely limiting yourself when your leash is too short. You can't be everything to everyone, but the complexity of all of this is becoming ridiculous.
Lyn - I find it amazing that agents don't do their homework. I have buyer's calling me all the time wanting to see MORE units in certain condo complexes that are not FHA approved, yet that's the type of financing they are getting.
Yes, having the financing matching the property is always a plus.
Lyn,,
Thanks for bringing this up to all of us, actually these days approve a condo it's very difficult here in Colorado they ask many things in the FHA world.
Most buyers do not even know what it means to be qualified. I always ask them to go to a lender FIRST and discuss what they can buy and NOT buy. Even at that you can still spend a lot of time and NOT get paid.
Charles: Yes that's true that why the agent has to know these things up front.
Ray: All our complexes are usually approved but lately with the new regulations on how far behind or how much the association is not collecting on unpaid assessments its making a huge impact. Some complexes have actually lost their approval.
J Philip: Life is so much simpler when you pay attention.
Michelle: I had a buyer once that would do the same thing, I had to run numbers on every complex because she was so tightly qualified. $10 too high on the assn fee, we were out of that complex. She kept calling with the same homes over & over again asking why. My calculator & I were terribly frustrated.
Lyn, I think a lot of agents don't know one detail about FHA. They think it means "For House Afficionados" or "Federation of Hairy Apes." I finally learned to ask the buyer's agent if the buyers have been approved, and if so, for what kind of loan. Usually the answer is a lingering silence.
This amazed me over and over the agents that would show my condo project and then call and say "I know it says no FHA financing available, how true is that?" What, don't you understand condos and FHA?
Todd: It's either approved or it isn't, no in between, no maybe's.