Purchasing a HUD home can be a great deal; however, before taking that leap it’s important to educate yourself about the process and do your due diligence. Here’s we’ve put together a general outline of what to expect during the HUD home buying process.
- Find the right agent
Only real estate agents who are registered with HUD may represent home buyers and investors in the purchase of HUD homes online – it’s best to find yourself a pro who’s experienced with these types of sales to help you through the process.
- Inspect the property before making an offer
HUD homes can often be fixer uppers, so it’s crucial to have an inspection. Take a lot of notes and photos of the property so you can be mindful of any improvements that need to be made when putting together your offer.
- Make an offer
The part of the process is different than traditional sales. HUD home offers can be canceled with no earnest money forfeiture, and once an offer is submitted, it can be canceled before the HUD agent opens the bid electronically, or after by sending an email to the company managing the home. Until the contract is signed, the earnest money is not in jeopardy, so there are a few days after the bid is accepted to cancel.
- Be ready to close
HUD home closing times are decreasing – sometimes you can close in as little as 30 days. It’s a good idea to have your loan documentation together ahead of time, including your W-2s, your paycheck stubs, your tax returns etc.
If you’re ready to start checking out HUD homes (or other distressed properties) in the Denver area, contact Metrowest. We specialize in these types of transactions and would love to help you start the process!