To submit an offer on any HUD property please call us and we will be happy to assist you! We are experienced in the sale of HUD homes and will make your transaction as smooth as possible!
Welcome to buying a HUD home. This is a brief overview of the HUD (Housing and Urban Development) buying process. Please visit the HMBI website for further information.
Buying a HUD Home is Different than Buying Other Types of Homes
There are a few things you need to know up front about buying a HUD home, since the procedures may be different than those used in buying other types of homes. HUD however, has made the procedure as efficient and convenient as possible. Here are some things you should know:
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Anyone can buy a HUD home
HUD homes can be purchased by anyone. While many homes are affordable, this is not a low-income program. Homes may be bought by owner-occupants (who have a priority bid period for 10 days), and by investors, who can then bid along with owner-occupants.
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HUD homes are sold at market value
HUD homes are initially priced for sale at the appraised market value. The buyer may offer any price, but HUD will only agree to offers that provide an acceptable return. Price reductions may take place later if the home does not sell.
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HUD homes are sold "As Is"
It is essential to understand that HUD homes are sold in "as is" condition. This means that the condition of the home when you see it is what you will be buying. HUD makes no warranties, does not guarantee the condition of any home, and does not verify that it complies with any local code or zoning requirements. You must make any necessary repairs after the purchase. HUD may make, or give you an allowance for, major system or safety repairs only if you are purchasing with an FHA-insured loan. It is very important that you get a Home Inspection by a licensed professional prior to closing on the sale.
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Deadlines must be met
When you buy another type of home, you can usually negotiate the contract and other transaction items over an unspecified period of time. This is not the case when purchasing a HUD home. In order to be fair to all purchasers, HUD has imposed timetables that must be met, or your bid or contract will be cancelled and the home returned to the market. Once your bid is acknowledged as the highest net to HUD, for example, your agent must send in a properly amended contract within 48 hours or the bid will be cancelled.
