As part of my marketing efforts, I periodically compile condominium sales data for different towns, identify condominiums that are not FHA approved and start making phone calls.
Yesterday, in speaking with a real estate agent who lives in Cromwell, CT, she requested the condominium sales data for her town. I have done several FHA condo approvals in Cromwell but I had never compiled this data.
What I found was staggering.
There are only 15 condominium projects in Cromwell and only 5 are approved with FHA. Our office has handled 3 of the 5 and we are currently working on another one. The average FHA loan concentration in the condominiums is 19%.
That’s not the cool part.
In 2013, there were 138 condominium units listed for sale. Of those, 34 were in FHA-approved projects and 104 were in projects that are/were not approved with FHA.
In the FHA-approved projects, 26 of the listings (81%) resulted in closed sales and 3 of the listings (9%) expired. Of the remainder, 1 is listed as active, 2 were canceled, 1 is under deposit and 1 was withdrawn.
In projects that are not FHA-approved, only 42 of the listings (45%) resulted in closed sales and 44 of the listings (47%) expired. Of the remainder, 11* are active and 7 were canceled; there are currently no units under deposit and none were withdrawn.
In other words, if a condo unit is listed in a non-FHA project, it has a greater chance of expiring than it does of being sold! Condo units in FHA-approved projects have nearly a 2:1 better chance of selling than those in non-FHA projects.
I have seen disparity in other towns, but not quite as striking as this. These numbers clearly indicate an advantage in being on the FHA Approved Condos List.
[*Note: Of the current active listings, 7 of them are in a new condominium development and are priced in the range of $314,000-435,000.]
The Condominium Project Approval Team at ReadySetLoan is dedicated to helping condominium projects across the nation to obtain their approvals with FHA and the VA or become recertified with FHA. We have assisted nearly 200 condominiums and we can help your association.
ReadySetLoan is an active member of the Connecticut and New England chapters of the Community Associations Institute (CAI) and is a frequent contributor to Common Interest Magazine as an expert in FHA/VA condominium project approvals.
Please contact us with any questions regarding FHA or VA condominium project approvals. You can email me at firstname.lastname@example.org or call me at 404-433-4565. I will be happy to answer any of your questions.
FHA/VA Condo Approval Specialist
404-433-4565 Cell Phone
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Check out our article in Common Interest magazine on page 19!