Purchasing a HUD home is an appealing option for first time buyers, buyers on a budget, and buyers in areas with limited inventory. While the process isn’t all that different than a traditional home purchase, there are a few caveats buyers should know about. Here’s a breakdown of some of the most common questions buyers have when considering a HUD home purchase.
How much do HUD homes cost?
HUD homes are appraised, then priced at what is supposed to be fair market value for their location. The price of a home in need of repairs is adjusted downwards to reflect the investment the new owner must make to improve the residence.
Will HUD make home repairs?
No. HUD homes are sold as-is. The new owner is responsible for all repairs and improvements, but there are financing options that can help for homes needing extensive repairs. Just like with a traditional home sale, you’ll want to invest in a home inspection before purchasing a HUD home.
Where do I find HUD homes?
Potential buyers can view HUD listings on the HUD website. Simply click on your state to view HUD listings near you.
How do I make an offer on a HUD home?
HUD foreclosures are sold using a bidding process, and you’ll have to find a licensed real estate agent to assist you in making an offer. For the first 30 days, HUD homes are available only to bidders who intend to make the property their primary residence. If a property does not sell in the first month, bids are opened up to real estate investors as well.
Will HUD finance the home?
No. You’ll still need to apply for a mortgage, and your financing must be approved before you make an offer.
Are you interested in checking out HUD homes in the Denver area? Contact Metrowest! We specialize in these types of sales and we’d love to work with you!