Guide to HUD Homes

1. Owner Occupants, Nonprofits, & Government Agencies Only May Initially Make Offers

2. No Escalation Clauses are possible (biggest negative of HUD homes).

3. Bid Deadlines Mean There's no Reason to Rush to the Home on Day 1

4. Price Reductions & Going Below or Above List Price (i.e. 63% went above list in Hampton Roads; average price/list price was 6% above asking price, but up to 50% above)

5. Different Offer Process

6. Utilities Typically Aren't On, & You'll Typically Need to Pay for & Cut Them On Yourself if Looking to do an Inspection

7. Check the “property condition report” on hudhomestore.com

8. Listing Agents Don't Get Offers Directly

9. Meaning of "Insured", "Insured w/ Escrow", & "Uninsured"

10. "Home Sold Subject to CFR 206.125"

11. Buyer Financing Incentives

12. 50% Off Limited Options w/ Full-Time “EMTs, Teachers, Firefighters, & Law Enforcement"

13. 3% Closing Cost Assistance Available

14. When to Buy

15. Phantom Property Availability is More Common

16. More from others

Images courtesy Hudhomestore.com

Related for Buyers:

• Good Neighbor Next Door Program (50% off homes)

• As is House Purchases & Sales

• Fixer Upper Loans

• Escrow Hold Backs

• Making an Offer on Real Estate

• Buyers 

• House Buyer Guide 

• The Importance of Choosing a Great Buyer's Agent 

• What to Look for in a Buyer's Agent for Your Home or Other Real Estate 

• What Adam Offers Buyers

• Contact Adam