Selling a Home to an FHA Buyer

• 1). Review the offer that an FHA approved buyer makes on the property carefully. FHA loans will have higher closing costs to the seller in comparison to conventional or VA loans. Have your real estate agent prepare a net sheet, which will estimate the proceeds paid to you as the seller upon the sale of the property. If the proceeds do not meet the market value or could be improved, have your real estate agent counter the offer.
  
  Many real estate contracts for FHA loans will have a section addressing lender required repairs. Sellers need to be prepared for an FHA appraiser to provide an inspection of the property both for the market value and for FHA required repairs to the property.
  
  
• 2). Complete the repairs that are required by the lender as quickly as possible prior to the buyer closing on the house. Use only licensed and bonded contracting professionals (a requirement for FHA loans).
  
  Once repairs are completed, provide the receipts for the repairs to your real estate agent. At this point your real estate agent will provide the receipts to the buyer's real estate agent for verification of lender required repairs. The buyer's agent, in turn, will provide the receipts to the lender to validate that the lender required repairs are completed.
  
  Bear in mind that if an FHA buyer also hires a independent inspector for the property they might request additional repairs to be completed prior to closing. In contrast to lender required repairs, the repairs cited in the independent inspection report are negotiable.
  
  
• 3). Set up a closing appointment at a title company once the buyer has received a clear to close. As the seller, you can typically select the title company that you would like to use.
  
  The title company's role in the sale of the property is to act as an independent third party, making sure that the adherence to the contract is completed to the letter of the law.
  
  If you are not sure which title company to select, it is best to follow the recommendation of your real estate agent. Closing costs for the seller can vary from one title company to another. Have your agent present you with estimates from a few different title companies in order to evaluate which one will have the least amount of costs to you as the seller.