Inexperience Can Cost Real Estate Consumers Dearly
An experienced listing agent knows how to best protect a Bonita Springs condo seller with regard to understanding the mortgage process. Recently, I listed a fairly affordable condo in Bonita Springs and on the first day it had a few buyer tours. One of the real estate agents who showed it, and presumably showed condos all day to buyers, called me to find out what it mean about the mortgage remarks in the confidential remarks of the MLS. When I explained to her that there was an investor who owned a large portion of units in the complex and that it could interfere with certain conventional mortgage program underwriting policies she asked me, “What about FHA?”.
First, not all listing agents would have the knowledge regarding the investor load. Second, we are in a low-skill real estate market and these new agents don’t really have the experience for success. I am only left to assume that this new agent showed condos all day to buyers who are financing FHA. Long story short, the entire complex has to be approved for an FHA loan and there are so very few of those it’s almost a non-starter. I tried to explain but she wasn’t having it. I recommended that she contact their lender and have a frank discussion about FHA and which properties are eligible.
The real heart breaker here is that there are buyers who spent a day in the car with a real estate agent who doesn’t know what she doesn’t know. Whether you’re a buyer or a seller inexperience is expensive to the consumer. Imagine if she had submitted a contract and my condo seller accepted it. The condo would have come off of the real estate market to work toward the closing process. The momentum would have been lost as days on market were gained.
The buyers would have started writing checks for loan applications, home inspections, HOA applications, possibly an appraisal. The buyers could have easily been $1,000 to $1,500 into the process before someone realized they had a loan program that wouldn’t work.
There is room for everyone in the real estate industry. Tons of new agents come when the real estate market is fluid and “easy”. (PS it’s never easy). What the new people need to do is ask questions and assume that they don’t know what they don’t know. I believe “in a rising tide all boats are lifted” so I tried to educate her on that facet of the loan program and she quickly got off the phone not wanting to hear it or learn the best way to move forward. She wasn't ready to go. So, who really loses here? The real estate consumer.
If you’d like advice about buying or selling a home or condo in Bonita Springs or you’d like help with experienced agents who understand the FHA loan process give us a call.