Important News and Techniques for Today's Real Estate Market

Buying HUD Homes (US Dept of Housing and Urban Development)

OVERVIEW: HUD properties typically represent the best opportunity for aggressive pricing, particularly if the buyer is going to be an Owner Occupant.   That's because HUD is chartered to foster the American dream of home ownership, so residents are given favor over investors.  Plus, you'll get several "government freebies" like a free appraisal (usually about $350), reduced closing attorney fees, and in many cases $1,000 credit! 

HUD Properties are sold via a modified bidding process, using custom HUD forms which are populated online. HUD requires that a licensed real estate agent who is officially registered/certified with HUD enter the offer.    

If you're thinking about buying a HUD home, your agent should pay particular attention to several things. 

PAY PARTICULAR ATTENTION:

• You should allow 45 days for closing.
• Any extension past 45 days requires specialized addendums to be submitted to and approved by HUD.
• Remember that the Lender will probably have to have the loan paperwork (the "closing package") to the closing attorney's office as muhc as 5 business days before closing!
• Prepare for a cumbersome inspection process if the house is winterized.  You can count on this in Georgia from September 15 - March 15.  During these times only, a fee of $75 will be required to "dewinterize" the property (turn on the utilities for your home inspection)
• Earnest money must be provided via certified funds.
• You MUST use a HUD-authorized agent to make your offer.  This is a HUD policy and there are no exceptions.