How to Buy HUD Properties
Buying a home costs not only money but also time and effort. With IMAX Premier, we make it easier for you. If you prefer to buy HUD properties for a home or as an investment, referring it to a registered broker is the best shortest and fastest way.
Remember, you must make a bid with a HUD Registered Broker. Contact IMAX Premier for assistance.
We at IMAX Premier, aside from being a registered real estate management services, we have established rapport with government agencies. You may find several HUD property listings on the Internet, but with IMAX Premier HUD property services, we guarantee that what you see on brochures and listings is the one that you can call your own.
If you want to buy and invest on HUD properties, just call our office and one of our Premier agents would be happy to assist you.
The procedure for purchasing HUD properties is not quite the same as if buying a home from an individual. HUD will appraise and price the properties at fair market value for the location. If the home needs repairs, the price will reflect that because HUD homes are sold as-is and the new homeowner is responsible for all repairs and improvements. HUD properties are listed online and to view or bid on a HUD property you NEED a HUD-approved real estate office to assist you.
HUD foreclosures are sold through a bidding process. First, there’s the offer period, in which sealed bids are accepted from the agent. At the end of the offer period, all offers are opened and HUD generally accepts the highest bid or the bid with the highest net value. If the home is unsold after this period, then bids are opened as received. If the bid submitted through your agent is accepted, your agent will be notified within a day or two. You will be notified of a settlement date which is usually 30 to 60 days from the date of accepted contract.
HUD will pay the real estate agencies commission up to 6% for the sale of the home. The selling agent must insert wording into the contract that states that HUD will pay his or her commission.
HUD does not finance properties so you must arrange for conventional financing or financing through an FHA mortgage. You want to make sure that your financing is worked out before you make an offer. If your bid is accepted and you are unable to secure financing therefore, do not close on the house, you will likely use the earnest money deposit that was submitted with your offer.
Also, you want to have a home inspection performed PRIOR to bidding. The home inspection can help you determine a bidding price and what repairs are needed. Consider any hazards such as lead paint in homes built prior to 1978 or asbestos.
During the initial offering, HUD homes are available only for people who wish to reside in the home as their primary residence. If an owner-occupant does not bid, then the bidding process is open for investors.
If foreclosures are not sold within 6 months, HUD will sell them for $1 each to approved nonprofit organizations and government agencies. These homes must be used to create housing for families in need or to benefit neighborhoods.
Because this process is significantly different from other real estate transactions, be sure to use a HUD-approved real estate broker, such as IMAX Premier. We can guide you through this complex process and ensure you receive the best deal. Contact one of our representatives today for more information.