Home Buying in Upper Darby>Question Details

Joey Horta, Home Buyer in Media, PA

Raised our offer to Sellers counter-offer, but then decided no to sell to us because we are coming in with FHA?

Asked by Joey Horta, Media, PA Sun May 12, 2013

We raise out offer 3 times to meet the counter, and now say they wont deal with us because we are FHA. Our combined income is about 250 - 275K a year. Our credit is only roughly 650, and since we just git married, we didn't have 10% down payment at the moment, which factored in to using FHA. Why would a seller counter only to decide not to sell to us? (I'm more venting than asking....lol)

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Answers

9
Likely the seller may already know that the home is not up to FHA standards, now if that is the case, the loan will not be issued to you.

The seller likely does not want to waste his time or yours if he knows his house is not up to their standard.

Have you checked the transaction history of the house? Someone may have already been denied an FHA loan on this particular house, and the seller may be aware of it already.
0 votes Thank Flag Link Wed Jul 17, 2013
I wouldn't want to buy a Seller's house who suggested that FHA wasn't good enough for them.

Also, it sounds like Seller's were entertaining other offers & chose another offer who had more money down or something else that made them feel more secure.

In general, people are only emotionally connected during the real estate transaction when it comes to their own "bottomline" numbers & demands.

It sounds like you & your spouse are on a great path!

Take Care!
0 votes Thank Flag Link Wed Jul 17, 2013
Also, it comes down to your realtor sitting down with their realtor and working this out. I would be able to convince them.
0 votes Thank Flag Link Sun May 12, 2013
You could try increasing your down payment to five percent (5%). FHA appraisal wouldn't look at roof.
0 votes Thank Flag Link Sun May 12, 2013
if the appraiser doesn't think the roof is performing as intended FHA will not lend on a home.
Flag Sun May 12, 2013
real question was how low did you offer? they may have been offended by your offer.
0 votes Thank Flag Link Sun May 12, 2013
what was the original asking price? how long had the property been on the market? 18k off a 400k house is not much but on a 200k that could be seen as offensive. Also if it was new on the market they may be much more sensitive to low offers.
Flag Sun May 12, 2013
about 18K under asking. They came down only 2k. I met that half way, so I added 9k. Then I added 4k. then I came to asking. I have been approved for WELL over the selling price, so I asked to add on buyer assist as the taxes in the area are very high. I then offered to drop the buyers assist all together...
Flag Sun May 12, 2013
Fred, I thought the same. But, as of this moment, they have no other offers. This is according to the sellers agent.

One suggestions was that the seller may think that the FHA inspection may pick up on something. The roof is just about at its life span.
0 votes Thank Flag Link Sun May 12, 2013
Hi Joey,

I agree with Fred. If after three counters they left the negotiations, it would indicate to me they received a better offer. If they were going to decide not to accept your FHA financing, they wouldn't have engaged in counter offers with you.

Best of luck with your house hunting. Don't give up!

Barbara Grandolfo
0 votes Thank Flag Link Sun May 12, 2013
Probably because they were advised to avoid FHA financing. Little do they know that FHA backs about %40 of loans today and they aren't nearly as strict as they used to be. The unfortunate thing for buyers is the up front and monthly premiums they have.

Chris
0 votes Thank Flag Link Sun May 12, 2013
Sounds like they received a better offer. Since you were only in the negotiation stages they could accept another offer at any time. In this market I would not be surprised if they received a cash offer. They took a better offer.
0 votes Thank Flag Link Sun May 12, 2013
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