We are a broad listing broker for HUD properties through HOMETELOS, and each time we enter into a listing contract with a new HUD Marketing Group we learn more and more about how to best navigate the HUD waterways. Here are some TIPS to ensure a smooth transaction and make sure you get the best deal possible on your HUD HOME.
Identify the property and research the comps. If YOU aren’t represented by a Buyer’s Agent, let US do your homework.
First, identify if the property is Insured, Insured with Escrow, or Uninsured.
For Insured and Insured with Escrow listings, the first 10 days of each initial list period the property is open only to OWNER OCCUPANTS.
For Uninsured listings, the first 5 days of each initial list period is open to O/O only.
If you miss the chance to put an offer on the property first time around make sure you notify your agent and the listing agent of your intention to buy. Many of these properties go back on market quickly if we don’t get the required documentation in the required timelines.
Act quickly and decisively!
Fill out inspection form request for utilities early in the bid acceptance to be sure you will have utilities on in time.
Deliver your contract and earnest money ON TIME.
Allow plenty of time for loan process and closing so set a realistic closing date.
Make sure your lender is timely with the loan process. Loan delays and delays in closing are COSTLY.
Understand you will be asked to pay an extension fee even when the delay is on the part of the seller. Don’t let this hold you up from continuing to closing. You can get these fees back with persistence and documentation at closing. DON’T LET YOUR CONTRACT EXPIRE while you fight this process because the property will go back on market and available for other bids.
Play the waiting game. LIKE us on FACEBOOK and FOLLOW US on TWITTER. This is the most important thing you can do in today’s market to increase your reaction time for capturing the best properties at the best prices.
We publish HUD aged property lists approximately once a month. HUD notifies us when a property has become “AGED” in their definition and this means that they will not reject ANY reasonable offer. Make offers on these properties! These are the deals and the steals. Know the surrounding market but bid with time on your side. Once under contract, follow the rules above.
DON’T forget to look at the assessed value of the property once you own it. Chances are it needs an adjustment. We can help you save money in taxes. Check out Real Property Tax Appeal Group at www.rptappealsgroup.com .