If you’re house hunter in Denver, 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 break down 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.
Who can bid on a HUD home?
The first thing you need to know is the Department of Housing and Urban Development requires that you submit your bid through a licensed agent or broker who is registered to make offers on HUD homes. So step one is to find an experienced agent who can help you navigate the waters as you find and purchase a HUD home.
How are HUD homes sold?
As we mentioned earlier, 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.
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 the foreclosure home. There’s a chance that yours will be the only offer. There’s also a chance you’ll be bidding against several other would-be buyers.
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 on a new listing will probably just be a waste of time. What’s worse, you could lose the property to a higher bidder.
Are you ready to start checking out HUD properties in the Denver area? Don’t forget step 1. The pros at Metrowest specialize in HUD home transactions and would love to help you start the process!