Joy Daniels

Just in case you were not aware of the changes that are going to occur for FHA (Federal Housing Administration) mortgages, I thought I’d share. Starting in the Spring (although no definite date was given), FHA will be changing their current lending standards. What this means is it is going to be harder for buyers to obtain a mortgage and it will cost them more to purchase a home.

There are several reasons not to wait to purchase: FHA lending changes, currently low interest rates, the tax incentive for those who qualify and it really is a buyer’s market. The link contains more details about the FHA changes.

Announced FHA Policy Changes:

http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-016

You know the old saying, “Under Promise and Over Deliver”! One of our biggest pet peeves in our dealings in the real estate world (and I can say: our buyers’ pet peeve) is when listings over-promise and under-deliver! I can’t tell you how many times buyers go into a property and are sorely disappointed because the listing reads one way but the home shows in a very different way.

What are some “over-promises”?

• It says: remodeled kitchen
• What you get: older kitchen cabinets that are simply painted

• It says: half-bath
• What you get: a toilet in an open area (like a laundry room)

• It says: 4-car garage
• What you get: a deep 2-car garage (tandem)

• It says: 4 bedrooms
  
• What you get: a bedroom in a basement or a captive (walk-thru) BR

• It says: family room
  
• What you get: a small sitting area

• It says: finished basement
• What you get: a basement with painted walls & carpet thrown down

The bottom line is this: If the listing says anything that the house is not, you will almost always have upset, angry or at the least, disappointed buyers. You may think you will get more buyers to look at your house, but actually what you get is buyers that feel like you’ve wasted their time! Don’t be vague and try to entice with “false” advertising. Instead, err on the safe side of not saying too much! It is better for buyers to leave your home pleasantly surprised, rather than disappointed!