Selling to an FHA Approved Buyer
With around 30% of buyers using FHA loans, there is a good chance you will get an offer from an FHA buyer for your home. If you want to accept that offer, you will need to have a home that meets the requirements of the FHA – which can be stringent and have derailed more than a few home sales that looked like an otherwise perfect fit.
While the FHA can be strict about its requirements for homes, the organization is relatively reasonable in what it expects. If you are planning to sell a property, you can most likely meet the requirements with a little effort and investment on your part. There are a few exceptions like a leaking roof or non-function heating system…which would be large expenditures.
Things to consider if you want to sell to FHA buyers:
Here is a list of common issues that an appraiser could flag when the buyer is using FHA financing:
- Peeling paint in homes that were built before 1978.
- Safety issues like as a missing handrail on a deck or stairway.
- Falling or unattached gutters.
- Exterior doors that don’t open and close correctly.
- Exposed wiring and uncovered junction boxes.
- Non-functional heating systems or significant plumbing issues.
- No active pest issues. This may require an inspection.
- Defective roofs or roofs with a life expectancy of fewer than three years.
- Rotted window sills, and wood trim.
- Missing or non -functioning kitchen appliances usually included in sale.
- Having bedrooms without windows for proper egress by a human.
- Foundation or structural defects.
- Having an actively leaking basement or standing water in crawl space.
- Empty swimming pools or pools that don’t have a working pump.
- Ripped or badly damaged screens or broken window glass.
- A fence in disrepair.
Fixing substantial issues before listing is necessary if you want to get the best price for your home—from an FHA buyer or any other buyer—so you might as well invest if you are interested in attracting the best buyers.