Should I wait the 90 days?

Question

I purchased a home on the MLS less than 90 days ago and renovated the home.  The project got finished quicker than we anticipated.  Should I list it on the MLS now or wait the 90 days?

Caleb Brown · Answer

Doesn't hurt to list but FHA buyers would be out of the picture until the 90 days is fulfilled. In my area properties are moving if done well. Price it right and have a good marketing plan

Bruce Lynn · Answer

Remember the 90 day rule is from the time your deed for purchase was filed until the time new sales contract is signed from what I understand.  That is for FHA loans.  Do you think FHA is the most likely financing?   Even if it is, I would go ahead and list now.  You just never know.  Maybe you get someone paying cash or using conventional financing.  Something like 1/3 of the properties sold in DFW are for cash.  You can put a note in the listing about the 90day timeline.  I see this often.  So if you get an FHA buyer, you just wait to execute until day 91.

As far as comps go, I would say savvy agents and the appraiser will all look at the property history.  If you bought off MLS, then they'll know what you paid, if it is day 31, 61, or 91 or 361.  If they use it as a comp will depend on what work you did.   I would make a list of all the work, and for the appraiser include the costs, so they can justify the new valuation.  Even if you bought off market, great agents should be able to guess what you spent on rehab and also make a guess as to how much you paid, unless you paid cash.

As an agent, I would suggest you connect with a great lender who can walk you thru all the nuances of FHA lending on a property like this.  Some might require two appraisals for example.  You'll want to know all those nuances just like the 90 day anti-flipping rule, so you don't waste time when you get a contract.

Wale Lawal · Answer

The renovation of a home can set it apart from a competing comparable property. Key factors include the quality of the renovations, market conditions, timing, appraisals, and presentation. If the renovations are significant and the market supports them, the property will likely stand out. Highlight the work done in your listing, such as before-and-after photos and upgrade details. If the market is competitive, buyers may focus on move-in readiness and upgrades rather than past sale prices. Timing is also crucial, as the faster the market moves, the less likely past sales prices will be a concern.

Good luck!

Kristin Flores-Brockman · Answer

I do, but I BP won't let me post it in this thread.

Bob S. · Answer

W

Kristin Flores-Brockman · Answer

Yes, but I am unable to share it on this thread.

Tiffany Dixon · Answer

Thank you!  The address is 1315 Silver Maple Drive, Carrollton, TX 75007.  I  am personally staging the home tomorrow and will have pictures taken on Thursday.  I can send you pictures soon.  Do you have an email address?

Tiffany Dixon · Answer

Thank you for your reply!  I was worried that the same home would be a competiting comp when it came time to sell but maybe that won't be a factor considering the amount of work we have done.  What are your thoughts?

Wale Lawal · Answer

@Tiffany Dixon

The 90-day rule, related to FHA seasoning requirements, requires a property to be owned by the seller for at least 90 days before it can be sold to a buyer using an FHA loan. This rule prevents property flipping fraud. If listing a property, FHA buyers may be ineligible until the 90-day period has passed. To avoid buyer limitations, wait for the 90-day period or consider the market. Listing now can attract non-FHA buyers, while waiting may broaden the buyer pool to include FHA buyers once the 90-day window is over.

Good luck!

Should I wait the 90 days?

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