When you are thinking about selling a property it is important to think about which buyers will be interested in purchasing your home. Thinking about who your target market is or who your buyers will be will help you determine the best strategy for selling and marketing your property. There are a lot of different types of buyers who might be interested in purchasing your property. Some of the buyers interested in buying your property might be: families who want to live in the property as a primary residence, real estate investors, wholesalers, banks, and investment firms. If you are going to be working with individuals and families that are using FHA loans or conventional financing its important to understand how your property will be evaluated to meet the requirements of these loans.
An FHA loan is a loan insured by a federal agency. You can find a lot of information on FHA loans by visiting the HUD website. FHA loans make it easier for folks with lower credit scores to purchase a primary residence and to live in it.
A conventional loan is a loan provided by a private lender, usually a bank. The person taking out the loan pays the mortgage insurance and in return is usually able to secure a lower down-payment and better rates than an FHA loan. Check out this article from Dave Ramsey for a good description of the difference between FHA and conventional loans.
If you are going to list your property for sale on the MLS and are going to market to buyers who are utilizing conventional or FHA loans your property will need to be able to meet some of the minimum requirements established by HUD or by the private institutions providing the conventional loan. Below are some requirements you should be aware of:
- No defects in the foundation
- No termite infestations
- Windows that are operational
- No paint defects
- Appliances that function
- No water damage
- Utilities must be turned on during appraisal
- Attics and crawl spaces must have vents and be free from damage
- The roof must be in good condition
It’s important to remember that an appraisal is required when working with FHA buyers. If the inspection and appraisal come back showing major defects you may be required to repair the defects or negotiate a reduced sales price for the property equal to the cost of repairing the defects.
If you work directly with a real estate redevelopment company, like Padstone Properties, you won’t have to make any repairs. Padstone Properties is a real estate redevelopment company based in Richmond, Va. We specialize in buying homes that are “fixer uppers” and need a lot of repair. If you are interested in receiving a no obligation cash offer on your house please fill out the link below. When you reach out to Padstone Properties we promise to:
- Make a no obligation cash offer on your property within 24 hours
- Let you pick the day and time of closing that is best for your schedule
- Close quickly
- No realtor commissions
- No repairs or removal of property necessary by the property owner
