If you’re a potential home buyer in a hot market like Denver, chances are you may be considering adding HUD homes to your search to give you more affordable options. But if you’re a first-time buyer you may have questions about how to actually go about getting a HUD home. Here we’ll give you an overview of the HUD home buying process and provide a few other tips that will come in handy as you consider HUD homes in the metro area.
How are HUD homes sold?
The HUD home buying process is different than traditional sales. HUD homes go through an electronic bidding process. For the first 30 days, a HUD home is on the market, preference is given to buyers who plan to make the unit their primary residence. If the home isn’t sold after 30 days, bidding is opened to real estate investors as well.
Who can bid on a HUD home?
The HUD requires that you submit your bid through a licensed agent or broker who is registered to make offers on HUD homes. You’ll want to find an experienced agent who can help you navigate the waters as you find and purchase a HUD home.
How much do I offer?
If you have an experienced agent, he or she will be able to recommend an asking price that’s in line with comparable properties. While everyone wants a great deal, in tight markets like Denver, there’s bound to be some competition. For a new listing, you should offer an amount closer to the list price. Making a low-ball offer in a competitive area isn’t a great use of time or resources. Even worse, if you do you could lose the property to a higher bidder.
Is there a lot of competition?
Depending on the condition and location of the property, there may or may not be multiple buyers bidding on a HUD home. There’s a chance that yours will be the only offer. There’s also a chance you’ll be bidding against several other potential buyers.
Are you ready to start checking out HUD properties in the Denver area? Make sure to get an experienced agent on your side. The pros at Metrowest specialize in HUD home transactions and would love to help you start the process!