There are a lot of misconceptions when it comes to buying HUD homes, which makes many people wary simply because they don’t know the process. While this type of housing is often misunderstood, HUD homes can actually be a great deal, especially in areas where inventory is low and prices are high. Here we’ll run through a few key considerations for anyone thinking of purchasing this type of home.
A HUD home is one that is in possession of the Department of Housing and Urban Development (HUD). The first thing to know about buying a HUD home is that the buying process isn’t the same as a traditional transaction. Your first step should be finding an agent who knows the ins and outs of HUD home purchases as he or she will be able to guide you and answer questions along the way.
HUD homes can be a terrific value, but they will be priced at fair market value so they may not be priced as low as you may think. Just as you would with any other property, it’s a good idea to get pre-qualified or pre-approved for a mortgage before you start searching. This will allow you to put in an offer sooner and show the HUD you’re a serious buyer.
When it comes to HUD homes, preference is given to buyers who plan on making the property their primary residence. While these types of properties are appealing to investors looking to fix and flip, or landlords who are looking for their next rental, the first 30 days a HUD home is available it can only be bid on by potential homeowners.
Are you interested in checking out HUD homes in the Denver area? Metrowest specializes in these types of transactions and we’d love to help you start the process. Give us a shout today!