FHA/Wells Fargo - Hold time & Profit

[Luiz Souza]

I've been working on this SS for a while now, a fixer upper in a great & desirable area !! I plan not to do any work, maybe cleaning - that's all. Based on what the bank is telling me I believe I have a pretty good deal in my hands.

Is 30 days the minimum amount of time required to keep this property before selling? Also, Is there a limit or amount that I need to stay below as far as profit goes? Ex:: Bought the house for $90k and one month later sold for $140 or more?

Thank you.

[J Scott]

Originally posted by Vikram C.:

My agent takes a folder containing the following:

1. before and after pics (omit the before pics if you have done very little work)
2. recent sales that we think reflect properties in the neighborhood in a condition similar to our homes
3. the rehab work done on the property, expenses, etc.

J Scott has discussed this in some detail on these forums and is the "official" expert on the subject. We merely copied his idea with his permission.

I'm hardly an expert, but I've found that by building rapport and trust with our buyer's appraisers, we have been tremendously successful at getting the numbers to work.

To expand on what Vikram said, here are concrete examples of the types of things I will provide to the appraiser, organized nicely in a folder:

- Renovation Overview (see attachment to this post)
- Rehab Cost Breakdown (see attachment to this post)
- Before/After Pictures (see attachment to this post)
- Comps (I print out comps from the MLS that support my sale price and add them to the folder)

These are all things that the appraiser can use to substantiate the value, as many times the underwriter will come back and ask, "Why is this appraisal so much higher than the seller's purchase price just a couple month's ago?"

Any time you can make the appraiser's job easier (or help him avoid any difficult situations with the underwriter), he'll thank you.

It also can't hurt to ask the appraiser about his family, his business, ask him questions that allow him to feel like you appreciate his "help", insinuate that you may want to use his services in the future, etc.

These are all things that will "encourage" the appraiser to want to help ensure that his numbers allow you to sell the property...