Barbara J No…, Home Buyer in 80229

Should I request reinbursement from my real estate agent and the listing agent for paying for an inspection on a property/condo that I was listed as?

Asked by Barbara J Northcross, 80229 Sun Dec 23, 2012

FHA approved and was not?

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Cory Fitzsim…, Agent, Golden, CO
Mon Dec 24, 2012
Who makes the decisions? Who is buying the property? Who is selling the property? None of them is the agent! YOU make the decision on how to proceed, the agent advises you. Expectations are often dissappointments. If you have questions ask them prior to the deadline in the contract, that is why they are there. Hindsight is 20/20.
1 vote
Ron Thomas, Agent, Fresno, CA
Sun Dec 23, 2012
You have gotten other answers to your question about FHA approval:
We certainly cannot advive you to hold the rest of the world responsible for your $400 fee for Appraisal; we don't the sequence of events, nor what you were advised.
But you have been told how to handle it now.
I suggest you proceed with a cooler head and listen this time.
1 vote
But arent you real agent people the professionals and should know your job. I would like you real estate agents to be held responsible just like I am at my job. It wasnt the appraisal you bozo it was the inspection charge.
Flag Sun Dec 23, 2012
Mandy Fling, Agent, Denver, CO
Mon Mar 18, 2013

An article by the Denver Post in 2012, estimated that only 1/3rd of condos in the Denver Metro Area had current HUD approvals in place. Any knowledgeble REALTOR would know that simplying checking this website will let you know if you should be showing the property or not to FHA buyers. If the property was expired or not on the list to begin with, your real estate agent should do the right thing and reimburse you for the home inspection.

Sometimes, however, properties may have additional issues that don't pop up until the lender orders the condo questionarre and the home may not be eligible for FHA financing due to HOA delinquincies ratios. In that case, it would not have been foreseeable that your agent would have known there would be an issue and should not reimburse you.

Another option would have been to look at a conventional loan. They are available at 3% down and sometimes can work to purchase condos where FHA approvals are not in place. They must go through a full underwriting review but can provide additional options.

I do hope that your next purchase is a smooth and easy transaction!
0 votes
James Ponzi, Agent, Aurora, CO
Sat Feb 2, 2013

In my opinion your lender should have counseled you about FHA project approvals to make you aware of the issues and cautioned you to have them (your lender) look up the project before you made an offer. I also think the listing agent should have done more due diligence before offering FHA terms, but sadly most real estate agents do not concern themselves with looking up this information becasuse they don't know how to look it up.
For future reference, check on project approvals here:

Best of luck to you.
0 votes
James, thanks for the info but that link is not working. Robert...
Flag Sat Feb 2, 2013
Debra (Debbi…, Agent, Livingston, NJ
Sat Jan 5, 2013
am a little late to this discussion, but.......I do understand your frustration.

You can always ask for reimbursement - you probably won't get it.
Perhaps you can ask your agent to help out, if you do move forward and buy a home from him or her, for the next appraisal.

Truthfully, I would feel responsible if my buyer paid for an appraisal due to my negligence in checking out the FHA approved list ahead of time.

Your agent, imo. should have been aware, had she checked, that the condo was not on the FHA approved list, and/or should have known enough to verify this with the listing agent.

Now, if the listing agent gave incorrect information - it still could, and should, have been verified by checking the official list.

It's simple enough - go to:

In addition -
The listing agent should have noticed you had an FHA loan pre-approval, and alerted your agent to the fact that the condo wasn't FHA approved - but apparently she was clueless, too!

Two "misses" occurred that could have been avoided if both parties were paying attention!

I had a similar situation with a listing of mine - received an offer from an agent.......looked it over, and saw the buyer was going for an FHA loan..............called the agent and told them the bad news - condo not fha approved (she had no idea what I was talking about!).......anyway........the deal got no further along than that.

Best wishes to you in the future......
0 votes
Robert McGui…, Agent, Denver, CO
Sat Jan 5, 2013

My understanding is that a listing that says they will accept FHA does not guarantee that the home is FHA approved. I have never known of a reimbursement from any of these parties in this case as you have laid it out. Not knowing the course of events or what was said and when, It is hard for us as 3rd parties to give you a definitive answer. Best of success from here in your home purchase.

Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
0 votes
Sally Grenier, Agent, Boulder, CO
Wed Dec 26, 2012
Asking the same question again isn't going to yield answers that you want to hear. It's unfortunate that both the listing agent and buyers agent missed this. Mistakes happen. Buying real estate involves risk. You could have paid the inspection fee, and then later the deal could have fallen through for any number of reasons. It happens all the time. Maybe the unit wouldn't have appraised? I know you don't want to hear this, but I'd just add this to "life lessons learned." Time to move on.
0 votes
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