FHA Offers are Pouring in!
Our property on Challen seasoned on Monday (we owned it more than 90 days) and the FHA offers started pouring in. We have offers from the asking price to $25,000 above the asking price! Our first thought was to take the highest offer. However, being the sea urchins that we are, we decided to analyze all aspects of the offers.
All of the FHA offers we received insist we pay anywhere between $6,000 and $7,300 in closing costs, plus they want us to pay other fees. As it turns out FHA will not allow us to carry a second mortgage for the price difference. So how should we determine the actual best offer?
This is what will happen. The FHA appraiser will dictate the selling price. We must lower our price to what the appraiser dictates. Given that, we are countering on all the offers to include no more than $3,000 in closing costs. The reality is with FHA, the offer price has nothing to do with the actual selling price. The price will be what FHA says. Someone could offer $100,000 more than the asking price and it will have no relevance to our actual selling price.
A fellow investor decided to base his decision on one that offered a 21 day closing. I think that is a very smart choice. The price will be the price. He selected the offer that will get him his money the fastest.
All of the FHA offers we received insist we pay anywhere between $6,000 and $7,300 in closing costs, plus they want us to pay other fees. As it turns out FHA will not allow us to carry a second mortgage for the price difference. So how should we determine the actual best offer?
This is what will happen. The FHA appraiser will dictate the selling price. We must lower our price to what the appraiser dictates. Given that, we are countering on all the offers to include no more than $3,000 in closing costs. The reality is with FHA, the offer price has nothing to do with the actual selling price. The price will be what FHA says. Someone could offer $100,000 more than the asking price and it will have no relevance to our actual selling price.
A fellow investor decided to base his decision on one that offered a 21 day closing. I think that is a very smart choice. The price will be the price. He selected the offer that will get him his money the fastest.
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